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CHEMICALS 
METALS 
ELECTRONICS 


- ; jT " * PUBLISHED IN LONDON AND FRANKFURT 003 

fTV. Tra See what Canning cai 

Tuesday March 9 1982 *** 3 °p ^» g S^S3SSSS 

.. C0l ^ 1warr ^> sauNc raiees; Austria Sch. ife • BaotUM r ao; Denmark Kr g-oo-. France ft b.oo; Germany dm 2.0; italy t .i.ooo; Netherlands r £25-. Norway Kr Mb Portugal ek so; spain pt» 8$; Sweden Kr B.00 ; Switzerland fr to. eire -cp: Malta sop 


See what Canning can cfa 

W Conn trig Group,T33GL Hampton St, 
Birmtog ham BIS 6A$-Tatephone 021-2368821. 


\L\\S -SIMM \R\ 


Prime rate cuts to 


GENERAL 


BUSINESS 


Wan must Gold off 16 % fail to allay 


fight new $ 16 . 75 ; 
selection £ down 
contest by 1 . 35 c 


U.S. economic fears 

BY DAVID LASCELUS IN NEW YORK AND DAVID MARSH IN LONDON 


Labour’s organisation commft- 


SOME MAJOR U.S. banks cot 
IB Y I v 7I" their prime rate by half a per- 

centage point to 16 per cent 
yesterday. . But while the move 
GOLD Ml sir 74 tn twfic brought promise of relief for 
£2£„ f £ * ,*2£f America's hard-pressed indus- 


tee voted unanimously to make London, Its worst level since tr j 3 j borrowers itwasnot wide- 
Militant Tendency member Pat September 1979. In New York ™ borrowers, it was not wiae- 

Wall — chosen as candidate for *** Comer Man* dose was ^ 

Bradford North— .fight a new S 328 * 2 - Pag® 29 The initial euphoria that it 

selection contest ■ ^ _ triggered on Wall Street 

But the committee- endorsed 5 «F|5F5f qaitkty e J apol ? te ^ “ famHi « r 
another Militant member, Derek £L!*izrtw. worries about the UA economic 

Hatton, as candidate tor liver. outlook quickly reasserted tiem- 

pool Wavertree." Back Page . (DM- 43lZ5LFFr 10.9499 selves. 


^ Three-Month 
_ Euro-Currency 
17 *' Interest a 
- Rates J\ 

H */w/\ 


Guevara ahead 

General Auihai Guevara: was 
heading for victory in 
Guatemala's presidential elec- 
tions, taking about" 43 per cent 
of the votes after early returns. 
Page 4 ' 

Afghan toll clai m 

UjSL deputy Secretary of State 
Walter Stoessel -said Soviet 
chemical weapon attacks in 
Aigfaanistan had killed more 
than 3,000. Page A 

Vietnam attack 

T hailand said Vie tnam had 


E against tba$ 


The U.S. move and pre-Budget 
optimism on London financial 
markets led to another decline 
in UK interest rates. ■ 

The Bank of England took 
further moderating action on 
the London money market 
desing ed to' postpone a cut in 
■clearing busks’ base rates until 
after the Budget 
Lower UK rates helped 


■n& do-terk 

rr_ 


depress sterling against an America, the two largest in the requirements. 


TradB-wedghtad 
Index «»«!•«' 


otherwise weaker dollar. The country 
pound closed in London at tutions’ 
$1.8250, down 1J35 cents from ceQ^s. 
Friday, and its trade-weighted 


ind« measured by the Snk of Jt^^S^SS^S SS closeat « 326 ;5 0 - 
England dropped to 90.2 from m Nev 


(FFr 11.035) and Sw Fr Z36 91.1. 
(Sw Ft 3.405). Its trade- „Th 


launched a big offensive in xve ; cbtpd ^ M 5 /oi n Chase Manhattan * Bank, New 

w«rtwn Kamnnohoo tran«in<» 8 UlaeX W8S SO - iI ruunmi fnlWM 


The prime rate cut was led by “? tbe result^t easing ^ the credit markets weakened. 

' ■Rant New of banks funding costs. The London blasting level. 


western Kampuchea, trapping papp 29 

Khmer Rouge guerrillas near 

the Thai border. Page 3 • DO LI 


York’s second largest, followed 


Tour DCOteSt ( Sw l-SSl). It was firmer at 

' , ’ \ e _ Y234J5 (Y234). Its trade- 

Paul Stephenson^ the Sports weighted index was 112 (I3JL2). 

PAiinniPe atiIw KIhaV matnUen «« ' 


Council's only black member, page 29 
resigned over Mrs Thatcher’s 

“failure to condemn” the # GILTS demand was boosted 
English cricketers touring by expectations of UK base 
South Africa. Kent batsman Bob lending rate cuts this week and 


Woolmer joined the tour. accurate predictions of U.S. 

" prime rate reductions. The 

■Jufi nro hiliae wvfnnor 1 Government Securities Index 
uu °» e was . wrong rose 0^ <n 68.55. Page 35 

The Appeal Godrt' .quadied- a . 

murder = convlctio^r against • .EQUITIES were mer~ 
Londoner Newton Rose after shadowed by gilts. The FT 30- 
finding that OlcL JBailcgr. Judge .index dosed 3.4 up at 

Edward - ClarkA was wrt>H^ Psse 36 

r^i^ cretdoa ' mne 


accurate predictions of U.S. 
prime rate reductions. The 
Government Securities Index 
rose 0.2 <0 68.56. Page 36 

EQUITIES were ever- 1 


Labour may stop Reagan 


Dozfertrial opens 


• -WALL STREET was 4J7 
down at 602.99 near the dose. 
Page 34 


BY MARGARET VAN HATT04, POUTKAL STAFF 


I Page 34 THE UK Government could be that tile possibility of President sider horn an undistinguished 

UOZier XTISI.1 opens ■ - * forced to withdraw its tenia- Reagan’s address had been dis- man in his first year of office 

Sixteen Red -Briflades mrban * «ELG*AN Government pro- ^ ^£3^ to V£. President cussed witii U.S. officials but no who ha« not made has mark in 

R° na ld Reagan to address .formal invitation had been world affairs, ami who is at 
S P? beis 5 bbth H a 0 ^ * ^ „ . best a controversial figure, 

napping US. Brigadiez^General SSISe this y^r byBF^ P^hamenl on June. 8, follow- The impbration remains, Mrs Thatcher is understood 
James. DorieV. Th^ trial was EM*-Pmre mg nuheations many members however, that the Goyemment to be preparing a more formal 

_ jj j r-— nf ftp Tjihrtiir Onnnsltinn Tiid?ht mav hnvp thsHp tnimninw with Tha 


implication remains. 


best a controversial figure. 

Mrs Thatcher is understood 


adjourned for a' week. ■ 

LT fares rebuff 


CHINA has created' a new I boycott the occasion. 


ing indications many members however, that the Government *<, b e preparing a more formal 
of the Labour Opposition might may have made soundings with approach to the Opposition. The 

< kAVUtA44 nH/IOOlAfl J-Vl rt iMfantifkTI aT TWOCAlYfim tf t4»<0 V l. • 'll -9* ...I. avl. 


the intention of presenting the shadow Cabinet will discuss this 


■ T -fares rebuff Ministry of Foreign Trade and Mr Michael Foot, Leader, of Opposition with a fait accompli tomorrow. Mr Foot has indi- 

" Economic Relations, .to -replace the Opposition, who learned of l v*ich it would be extremely C ated he appreciates tbp 

The Govenunent- rejected a GLC foo? former ministries, under the proposed address from difficult for Labour to over- Government’s dilemma and is 

request for help to avoid the Chen Muhua, highest-ranking press reports, yesterday told tinm. prepared to discuss the matter 

doubling of London Transport woman in the state apparatus. Mrs Margaret Thatcher, the Mrs Thatcher yesterday in- with his colleagues. 


fares on March 2L Page 6 page 3 

ravriifFfirphomh 9 BUILDING ACTIVITY in the 
Uar T ,1T T,reDOrnD UK fell 12.3 per cent last year 
The, Welsh Liberation - Army to its lowest since 1961. Page 6 


Page 3 

• BUILDING ACTIVITY in the 


Prime Minister, he opposed the ISSLSL ! 1 While Labour may decide not 

pl Her y m ™ to 2 i,t, Mffa-rarSs 


accounts committee about I his hostility clear 1 . 


of Britain’s greatest allies, 
should be invited to address 


Kirin ran nflv.nuf ajiegeo. impropriei 

Manap pay-out ^ 0 f a^ts froi 

Kidnappers released the 18-year- pany^s Bathgate, 

old daughter of a -West German tractor plant 
bank executive : after forcing wTTwnvT aiuttt 
him to pay DM 2.7rn (£630,000; . 

ransom. appliance, distrtbut 


alleged, improprieties in the Both Government and Opposi- Parliament during his visit. 
sa ^ e - of tion are embarrassed at the The Labour Party, howe 

pany s Bathgate, Scotland prospect of a diplomatic inci- feels such an invitation is 


dent in which both would be accolade 


vl amauio siouwi “«*«, a. format 'invitation. 

should be invited to address m 

Parliament during his visit. . When the matter was raised 

The Labour Party, however. m 5? c ^ smoBS ***£*-£ 
feels such an invitation is an ****** ^® came •£*““{*? 


tractor plant in whi«5i » would ac^la^e ^ George Thomas, the £ ^peakw, 

• EUROFL AME the cookine seen to snub the President Reagan does not merit. The 1124 nor been consulted either ' 

appliances distributor is to be Downing Street, in particular, last . foreign leader to receive No invitation could come 
investigated bv the Department aPPe&rs annoyed at the manner this honour, it was pointed out from the- House of Commons 

of Trade Back Pace the invitation was made public, yesterday, was President de and the House of Lords without 


# EUROFLAME, the cooking 
appliances distributor, is to be 


of Trade. Back Page 


through what it considers a pre- Gaulle in 1960. 


their approval, be said. He 


• Qf Trade Back Pace UJC mviwuuu mouc puuub, jrcaiciuaj, Wfld tiwuuvut «uu u*c mvuoc gi 

c L03.VG IRA 1 piGa. "... tiirmigh whatit considers a pro- Gaulle to I960. tbeir approval, lie said. He 

— • tw.v ^hnnia^n ■ BUSINESS INTERESTS of. mature- announcement at the Many Labour Members feel promised to make a statement 

-t * a Tnfwortv X Ma^' tvricnniS^pw Mr Robert Holmes 4 Court re- weekend freon the White House, it would be ludicrous to invite to the Commons after he had 

veaied to the Takeover Panel It was made dear yesterday President Reagan. They con- had time to consider the matter. 


BUSINESS INTERESTS of I mature announcement at the Many Labour Members feel promised to tnAke a statement 


at Belfast’s Maze prison, urged "aled to iheSeover Panel 1 
young people to leave the 3RA J^^lyin^whStiieyboSt 

Sv its^niA' ^lavf” endaageI ^ d 925,000 ACC non-voting shares, 
by its lynch law. 3?> ^ Back pag e 

Warships saved • steel production 

_ v, •*" .. stopped at BSC’S Ravenscraig. 

The Government J^vmsed [its Scotland, plant when new work- 
decision to phase out the Navy's ^ practices' were introduced 
two amphibious warahips,HMS ^ ho " ut ^ approva i of the 
Fearless and Interpid. Page 6 biggest union. Page 8 


GM-Toyota joint venture talks 


BY RICHARD C. HANSON tN TOKYO 


. GENERAL MOTORS of the U.S. UJS. The disclosure of the This leaves GM as the only 

Lift fall deaths • TOUCHE REMNANT, the Toyota of Japan, two of the talks comes against a bade- remaining candidate for a link. 

. ■ • . investment ma nag e me nt group, -worid’s largest car manufac- ground of mounting U.S.-Japan American Motors is tied to 

Three scaffolders died when a announced plans to ^reorganise are considering a joint trade friction. Renault of France. and 


Lift fall deaths 


Renault 


France, 


temporary Wt fd| l away ^from its £9^ of investoeat trusts, venture to build smaU cars in a ioint nrodnetion agreement Chrysler, beset by financial 

the Side Of fiats in West London including making Cedar Invest- U-S . Problems, owns 15 per cent of 

and plunged eight, storeys to the me nt Trust a unit trust. Page 28 Mr Eiji Toyoda, the presi- m Mtsnbishi; another Japanese 

Sn>UBd * # BTR, the energy, engineer- dent of Toyota, and Mr Roger ^ u>s . anti-trust 'laws, manufacturer. 

: 5g and marurfaaSring group, ^ ™* m motor industry analysts pointed . Toyota’s dwmssions with GM 

Briefly « . I n re-tax nrofits to New York last week and dis- have caused some surprise 

7 iSf [IrrznsS^t vSrPaee ^ssed the idea, both groups “i. because of the U.S. company’s 

Cholera has killed 30 in West y * 85 said yesterday. They have . Toyota discuss &d a existing links with smaller 

java. . 26, " acK 38 agreed to further talks although Rknt venture with Ford of the Japanese companies. GM holds 

torr? crashed into shops in • BRITISH VITA, the mamt- mo details were disclosed. ■ U.S. last year but the idea 3t2 per cent of Isuzu, fee truck 


Java. 

Lorry crashed .into shops in 


Marand, north-western Iran, facturer of polymeric products, .For Toyota, an agreement foundered because of Japanese manufacturer. Last year GM 


killing 10 pedestrians. 


increased taxable profits to with GM would resolve the fears of an Arab boycott of its and Isuzn joined with Suzuki, 


Hrt-rtpr guard de- £7.9?m (£7.1 lm) last year. Page dilemma <*f how to cope with products. Ford has a. mamtfec- a producer of znini-cars, to 

A>St udJiiau uv* uc* 6 no I nmfMtinnief nrvxsaiTAs in tin-ina nlarrt in Tjsrael. • dp vet on a small car. 


fected to the West. 


protectionist pressures in the luring plant in Israel 

. CONTENTS 


CHIEF PRICE CHANGES YESTERDAY 


(Prices b pence unless 
. \ RISES 
Excfcqr I4pc J9S6...-£99i 
Bxchtsr 15pc 1997.. .£109} 

BICC 328 

Barratt Devs 277 

Btaby Leslie 36 

Bulmer (H. P.) - 348 
Oliver Discount ... 29 
Davies Metcalfe A 60 

Dubiher 78 

Dyson fj. and J.) A 95 
Estates and General 74 

GUS A 495 

Greenfields Leisure 25 

ICI 346 

Land Securities 312 
London-Brick ...... 84 

Midland Bank ...... 350 

Pleasurama 412 

Provident Financial 130 
Rani Elect- ......... 363 


otherwise indicated) 

Schoies (G. H.)' ... 300 

+ ft Scott (David). 21* 

+ 2 Sonic Sound 112 

+ il Standard Tlphones 470 

+ IS Wiggins Cns }« 

+ 4 Wimpey "(I 

+ jo Bond Crpn 85 

+ 3 Central Pacific ... 27 

+ 10 Charter Cns 222 

+ 7 Western Mining ... 208 

J 4 FALLS 

+ 16 LASMO 

+ 10 Ultramar ............ »»» 

+ 4 Anglo Amer Crpn_g5 

+ S Anglo Amer GoId...£2S* 

+ 5 Bracken 

+ S* De Beers Dfd 292 

+ s Driefontein 

+ 22 Leslie - * 

+ 5 Pres Steyn SJJ ’ 

+ 6 Rjmd/ontein Ests ...£193 


Wrestting with recession: "hadting” a 

path to recovery 24 

The Kremlin succession: the KGB puts 

down a marker 25 

Technology: innovation in paper ... 12 
Commercial law: development land tax 
on compensation 15 


Lombard: 
EEC 


develop a small car. 


Britain’s tactics in the 
25 


Management: climate, for small business 
in EYaace 14 

Editorial comment: Trident; German 
labour 24 


American News _ 
Appointments — .. 

Arts 

Base Rates ........ 

Business Opts. ... 

Commodities 

Companies UK ... 

Crossword 

Entertain. Quids ... 

euromarkets 

Euro Options ...... 

European Mews ... 
FT Actuaries ... — .. 


Foreign Ea B han g OS 29 

Inti. Companies 30,32-33 

Jobs Column 2 

Leader Page 24 

Latum S 

Lex «0 

Lombard .. — 25 
London Options 27 

Management 14 

Men & Matters ... 24 

Mining 27 

Money Markets ... 29 

Overseas Nows ... 3 


Parliament 10 

Raring 13 

Share Information 38-39 
Stock Markets: 

London ..... 36 

Wall Street 34 

Bourses 34 

Technology ..... 12 

TV A Radio 13 

UK N*wm 

General 6-7 

Labour .... 8 

Unit Tram 29,37 


Weather ...» 40 

World Trade Heim S 

World Value £ ... 36 

INTERIM STATEMENTS 

Gaillford ............ 28 

Gaorge H. Sc ho lot 28 

Wintniet ............ 26 

ANNUAL STATEMENTS 

Libra Bank 32 

Braid Group ........ 26 

Scot. Mutual Ass. 28 

Notrham Man. Co. 20 


For latest Share Index phone 01-246 6026 . 


m* 


i 


Oil likely to fall 
to $30 a barrel, 
industry predicts 


BY RAY D AFTER, ENERGY EDITOR 


The pace of credit demand is 
also stronger than might be 
expected in a recession, though 
banks report ahat it is tapering 
off. 

The prime rate cut sparked a 
vigorous but short-lived rally 
on Wall Street. Stock prices 
surged ahead in early trading, 
poshing the Dow Jones 
industrial average up nearly 10 
points in the first half hoar. 

Weekend reports that the 
Administration would be forced 
to make some concessions to 
narrow its alarming budget 
deficit added to the sense tbat 
a corner might have been 
turned. 

But by early afternoon the 
market had given up virtually 
all its gains. As the credit 
markets fell again, the talk was 
of economic gloom and the 
threat posed by ‘the U.S. 
Treasury’s heavy borrowing 


oust . 'J'oe country, and other major insti- Sonne of the interest rate 
London at StioSf in the big financial 


slid a further $16.75 an oz to 
market The London gold price 


expected m tne waxe or last Late ^ New York it fell 
week’s decline m UB. interest fnrther to near Ibe $320 level 


e oamts tunning costs. The London dosing level, 

Friday’s sharp $3bn fall in lowest since early September 


6 by Morgan Guaranty and the U.S. money supply helped. 1979, followed a day of further 

• DOLLAR fell to DM 2.3415 Bankers Trust First National However, considerable nncer- steady selling, with investors 
(DM 2.344) and Sw Fr 1.84 n«nir of Chicago and a handful tainty still surrounds the U.S. still depressed by general work! 
(Sw BY L851). It was firmer at of smaller regional., banks interest rate outlook, and the recession and the prospect of 
Y234J5 (Y234). Its trade- joined the move. recent volatility of money costs more selling from the big go-fil 

weighted index was 112 (1LL2). But conspicuous absentees has made banks wary of follow- producers and the Middle East 
Page 29 included Citibank and Bank of ing market treads too closely. Honey Markets, Page 26 


1979 -1980 1981 1982 


Increase in 
industry 
costs slows 

By Max Wilkinson. 

Economics Correspondent 


I THE ANNUAL rate of increase 
of industry's costs fell 1| per- 
centage paints to 22 per cent 
last month compared with Janu- 
ary, according to Central Statisti- 
cal Office figures published 
yesterday. 

The annual inflation rate of 
wholesale prices was down i 
point to 10.6 per cent indicating 
overall a substantial easing of 
inflationary pressure on indus- 
try. 

This will be welcome news to 
Sir Geoffrey Howe, the Chancel- 
lor, whose Budget this afternoon 
will concentrate on the continu- 
ing fight against inflation while 
giving limited help to industry. 

One of the most encouraging 
pointers from the figures is that 
industrial casts rose only about 
1 per cent in the last six months. 

This reflects sterling's 
strength as well as the general 
recent weakness of commodity 
and oil prices. 

The cost of materials and 
fuel for industries other than 
those supplying food, drink and 
tobacco rose § per cent in the 
past six months. 

The annual rate of increase 
of industry output prices fell 
for the second month running 
after rising steadily in the 
second half of last year. This 
rise reflected the falling value 
of sterling during the earlier 
part of 1981. - 

The latest a nn ua? inflation 
rate for retail prices in January 
was 12 per cent 

Yesterday’s wholesale price 
figures will boost the Govern- 
ment's hopes that the fate will 
start foiling again. The easing 
of oil prices should help further 
to contain costs and prices. 

The Government's target of 
bringing the inflation rate down 
to 10 per cent by Christmas 
this year looks attainable. Some , 
analysts are even predicting a i 
rate in single figures before the 
end of the year. 

The wholesale price index for I 
sales of manufactured goods in j 
six months to February was 4i 1 
per cent compared with 4i per 
centin the six month to January. 

The price index for materials 
and fuel bought by manufactur- 
ing industry was 239.6 (1975= 
Continued on Back Page 
Lex, Back Page 


THE REFERENCE price of 
crude oil produced by members 
of the Organisation of Petrol- 
eum Exporting Countries is 
likely to fall to about $30 a 
barrel within the next few 
weeks — a drop of at least 54 
— according to oil industry 
leaders. 

International oil producers 
and traders said yesterday that 
Opec's weekend agreement to 
reduce its collective output 
from about 20m barrels a day 
to lS.5m b/d would be in- 
sufficient to restore order to 
the oversupplied oil market. 

It was felt that the 13-nation 
organi.yuion would be forced to 
cut production even further and 
accept a big reduction in official 
prices: probably by at least $4 
a barrel — possibly more if 
demand remains weak. Opec 
ministers are scheduled to hold 
an emergency meeting in 
Vienna next week. 

In the spot market yesterday 
prices of freely traded crude 
oil cargoes continued to fall. 
The spot price of Arab Light 
oil fell by 25 to 70 cents a 
barrel to about $28.50—*bout 
$5.50 below the contract rate. 
Forties Fieki oil from the 
North Sea was being traded at 
a similar price, about $1 less 
than the spot rate at the end 
of last week. 

Few traders were prepared 
to predict pricing trends over 
the coming months. One said: 
"I have never seen such con- 
fusion in the market’’ 

Oil companies pointed out 
that the market could not sus- 
tain a position in which high 
grade North Sea oil was being 
sold under contract for $31 a 
barrel — as much as $6 below 
the price being charged for 
similar crudes by African 
members of Opec. 

“The real issue is whether 
Opec can become a true cartel 
and act together to control pro- 
duction,” said a senior econo- 
mist with a leading U.S. oil 
corporation. He thought that 
Saudi Arabia’s decision to lower 
its production ceiling from 8.5m 
, b/d to 7.5m b/d — part of the 
Opec production accord announ- 
ced at the weekend — was a 
move in the right direction but 
it did not go far enough. 

Companies said that while 
price cuts could help the West 
emerge from recession, they 
were* causing some problems. 
Companies pointed out that: 

• A number of Opec members 
could soon face economic and 
political crises. These could 
make some governments vulner- 
able and unpredictable. “We 
are reaching a highly unstable 
state, the effects could be really 
nasty." said one London-based 
oil economist 

• There were signs that the 
public may be relaxing conser- 


vation efforts. New attitude 
surveys in the U.S, showed that 
more motorists want to return 
to driving large cars. 

• Uncertainty about future 
energy prices was causing fuel 
industries to reconsider their 
investment programmes. Oil 
exploration activity in the UJS. , 
was falling: initial seismic 
operations were 10 per cent 
down on the peak of last , 
September; and drilling activity j 
had fallen by 7 per cent since 
the end of last year. 

“The oil industry has lost 
control of the oil market. It is 
being carried along by specula- 
tors,” said one trader. 

Few industry observers were 
willing to predict the outcome 
of the Opec meeting next week. 
One widely canvassed theory 
suggests that Saudi Arabia will 
agree to a further reduction in 
its output in exchange for i 
modest cuts by other members ‘ 
and a lowering of the reference 
crude price to about $30. Six . 
months a®> Saudi officials were 
insisting that $28 was the • 
correct market level for Arab 
Light crude. 

Observers argued that tile 
Saudis, dismayed at the way 
other Opec members forced up 
prices in 1979 and 1980, would 
use their production ability in 
the current weak market to 
obtain and maintain a moderate 
and unified pricing structure. 

Richard Johns writes: The 
agreement reached by the 
majority of members of Opec 
at Doha, Qatar, at the weekend 
to reduce collective output 
appears to be a stated objective 
rather than a precisely worked 
out programme of action. 

One evident contradiction was 
the derision to give Iran — in 
the absence of any representa- 
tive from Tehran — an increased 
“ quota.” 

The scale of Iranian ship- , 
meats has been kept secret but { 
they are reckoned, to be running 
at about lm b/d. 

Iran, in a bid to boost Us • 
foreign exchange reserves, 
which are estimated at only , 
$lbn has already bracken ranks 
with other members by cutting . 
its price by $2. lowering the 
rate for Iranian Light from 
$34.20 to $32.20. 

Tehran is making strenuous . 
efforts to find new customers. 

It could export from L5m b/d 
to 2m b/d and is unlikely to be . 
Inhibited by any Opec agree- 
ment 


£ in New York 


pravtou* 


Spot S1JLSVO-B300 8 1,8350-8370 
1 month i0.1DO.15pm >0.08-0.13 pm 
3 monttu'0.44-0.49 pm 0.4241.47 pm 
18 monthall.g5-2.03 pm 1 1 .85-8.05 pm 


HOW READY 
IS YOUR 
READY-MADE 
FACTORY? 

You know the set-up. No heat. No power. No offices. Sign 
tomorrow then three months before you can move in. Make the 
best of it. Look for your blessings and then try to count them. 


Well, you can forget all that, now And ] 

Northampton can offer you Brackmills 7. town 
These are the last word in ready-made Expa 
factories. AH the amenities are there. of th< 

"Wailing for you. Ready. Right down to oounl 
car-paddng and landscaping. Everything Horn 
you need. 

Sign in the morning— mo vg in after 
lunch. We're that ready foryotL^^^^^S 

And foere's more 
news. Rents go 
horn £2.05 to 

Sizes go from 5000 to 
20000 square feet 

Even the location's 
on your side. Brackmills 7 
ss<mfy5nrinutesfromMl I • 

junction 15. _ _ r\iA(A)L 


And Northampton's not just another neiv 
town. It's been growing for 6000 years. 
Expanding. Maturing. Developing one 
of the best labour relations records in the 
country. Adding schools. Social facilities. 
Homes. Getting jReadyforyou. 


Take a closer look at the 
. outstanding specification 
these industrial 
IjjE^ mrits and write or 
llg^phone today for a 
§fl||k full colour brodinrew 


0CD8VV 

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Financial Times Tuesday Marc& 9 1922 


EUROPEAN NEWS 




Madrid security 
conference 


will adjourn 


BY OUR MADRID CORRESPONDENT 


THE DEADLOCKED Madrid 
meeting reviewing the Hel- 
sinki accords on security and 
co-operation in Europe agreed 
to adjourn yesterday from Fri- 
day until next November in 
recognition of the stalemate in 
East-West relations caused by 
events in Poland. 

The extent of the deadlock 
at the 35-nation conference 
became evident last Friday. 
The Western nations refused 
to agree to further meetings of 
working groups drafting a con- 
cluding document until an 
early .adjournment date was 
agreed. This Jed to the sus- 
pension of the plenary session 
at 4.20 on Saturday morning 
under the diplomatic guise of 
a " coffee break ” that lasted 
until yesterday. 

Jolted by the manifest deci- 
sion. of the Western group not 
to do u business as usual ” in 
Madrid while martial law- con- 
tinued in Poland, the Soviet 
delegation agreed at the week- 
end to a proposal by the 
neutral nations that the meet- 
ing adjourn from March 12- 
November 9. 

A Western delegate 
described the marathon Fri- 
day-Saturday session and the 
subsequent 57-hour coffee 
break as “ one of the few 
times that the West has out- 
sat the East at an international 
conference." 

Under the terms of yester- 
day's plenary session the 
meeting of all the delegations 
on Friday will decided on a 
further working programme in 
order to complete a balanced 
and substantive concluding 
document. Diplomats, how- 
ever, said that- "a firm, gentle- 


man's agreement " had been 
elicited from the Soviet dele- 
gation to' ensure the manda- 
tory consensus for a nine- 
month recess. 

The determined Western drive 
for an early adjournment was 
the underlying theme of the 
speeches by foreign ministers 
last February 9 when the con 
ferenee reconvened after 
Christmas. Speakers, led by 
Mr Alexander Haig, the UB. 
Secretary of Stale, stressed that 
there could be no “ business as 
usual ’* in Madrid while the 
Polish crisis persisted. 

An adjournment was resisted 
by the Eastern bloc which 
claimed that the plenary discus- 
sion of developments in Poland 
was an interference in its 
internal affairs. The Western 
decision not to participate in 
working groups ostensibly draft- 
ing a concluding document for 
the past month reduced the 
Madrid meeting to stormy ses- 
sions of mutual recriminations 
between East and West. 

Concerned that the con- 
tinued meeting of the draft- 
ing groups, despite the 
absence of any negotiations, 
gave the Eastern bloc a basis 
for claiming that the Madrid 
conference was continuing as 
usual, the Nato caucus here 
chose last Friday to make a 
determined bid for a recess. 

Last Friday was die original 
target date for the completion 
of the Madrid conference with 
a concluding document that 
would have reaffirmed the Hel- 
sinki detente accords. 

The conference has been 
continuing, off and on, in Mad- 
rid since November 1980 as 
East-West relations deteriorate 
progressively. 


Haughey is favourite 


to form government 


BY BRB4DAN KEENAN IN DUBLIN 


MR CHARLES HAUGHEY, the 
Fianna Fail leader, is still 
facourite to form a government 
when the Irish Parliament 
meets today, but the result 
could be in doubt until the 
actual division and the winning 
margin could be only one vote. 

Meetings were being held 
right up to the last minute on 
the various permutations which 
might produce a government 
Mr Haughey needs the support 
of at least two other members, 
while the outgoing Prime 
Minister. Dr Garret FitzGerald, 
needs at least five to continue 
in office. 


Dr FitzGerald's hopes have 
been kept alive by the possi- 
bility that the five left-wing 
TDs (MPs) might vote as a 
block. There seems a fair possi- 
bility that he will get four of 
These votes: three from Sinn 
Fein, the Workers' Party, plus 
Mr Jim Kemmy, an Indepen- 
dent 

The belief among many 
observers was that the fifth 


left-winger, Mr Tony Gregory, 
was more likely to support Mr 
Haughey and that lus vote, 
along with that of Independent 
Fianna Fail TD, Mr Neil Blaney. 
would ensure victory for Mr 
Haughey. 

The Prime Minister has 
indicated to the Independents 
that he is prepared to change 
the more contentious proposals 
in his defeated budget, while 
maintaining the same deficit 
The changes involve the imposi- 
tion of VAT on clothing and on 
footwear and the proposals to 
reduce food subsidies. 

There has been some muted 
criticism of this approach from 
some of Dr FitzGerald's back- 
bench supporters. They believe 
that the price of staying in 
office with left-wing support 
could be too high and do not 
relish the prospect of another 
minority Government Dr Fitz- 
Gerald, however, is determined 
to fight to the end for his 
Government's survival. 

Anglo-Irish Council MPs may 
meet soon. Page 10 


Close Brezhnev aide wins 


top Soviet honour again 


MOSCOW — Mr Leonid 
Zamyatin, a leading foreign 
poliesy spokesman for President 
Leonid Brezhnev, the Soviet 
leader, has been awerded the 
Soviet Union's highest decora- 
tion on his GOth birthday, the 
official news agency Tass said 
yesterday. 

Mr Zamyatin, who headed 
Tass from 1970 to 1978. was 
given bis second Order of Lenin 
“ in recognition of his services 
to the Communist Party and the 
Soviet State,” the agency said. 
He won his first .Order of Lenin 


in 1971. 

In 1978 Mr Zamyatin was 
named chief of the newly 
created Department of Inter- 
national Information of the 
Communist Party's policy- 
making central committee. He 
has been a member of the com- 
mittee since 1976. 

He acted as party spokesman 
to the foreign Press during the 
party's 26th congress in Feb- 
ruary last year, and frequently 
handles media questions when 
Mr Brezhnev travels abroad. 
AP 


Spanish 
coup bid 
‘had royal 


backing’ 


By Tom Burns in Madrid 


THE controversy surrounding 
the court martial in Spain of 
the officers indicated follow- 
ing last February's coup 
attempt heightened yesterday 
when the first defendant to 
fact cross - examination. 
General Jaime Milans del 
Bosch, repeated allegations 
that King Juan Carlos sup- 
ported the rebellion. 

He also testified that 
several other military plots 
were being hatched. 

Gen MI Ians del Bosch’s 
cross-examination by the 
chief prosecutor followed two 
weeks of hearings in which 
written statements taken 
(during the preliminary in- 
vestigations were read out to 
the 17-man bench of senior 
generals. 


Gen Milans del Bosch, the 
most high-ranking defendant 
on trial and widefy admired 
in military and right-wing 
circles, stated his "absolute 
conviction * that the King 
backed an attempt to “ re- 
direct ” through his 
generals a discredited govern- 
ment headed by Sr Adolfo 
Suarez, the then Prime Mini- 
ster. 


Gen Milans del Bosch said 
the basis of his claim of royal 
involvement was a conversa- 
tion he had in January last 
year with co-defendant Gen 
Alfonso Armada, a former 
tutor of the King and a deputy 
chief of army staff at the time 
of the coup. 


King’s opinions 

Gen Milans del Bosch 
claimed he was told that the 
King had baeked action 
daring conversations with 
Gen Armada on a skiing holi- 
day in the Pyrenees. 

Gen Armada,, in written 
evidence, has denied that be 
discussed the King's opinions 
with Gen Milans del Bosch. 

Gen Milans del Bosch 
emphasised that there were 
at least three different plots 
within the military early last 
year, one involving lieutenant 
colonels, one backed by 
colonels and a third with the 
Civil Guard playing a pivotal 
role. 


Gen Milans del Bosch, who 
declared martial law in the 
eastern Valencia military 
region when the Spanish, 
parliament was seized by the 
Civil Guard, claimed that he 
acted to channel the various 
plotting groups. 

Asked by the prosecutor 
who was behind the alleged 
colonels’ coup, Gen Milans 
del Bosch said he would not 
reveal names. Asked who had 
arranged a conspiracy meet- 
ing in Madrid between him- 
self and Lt-Col Antonio 
Tejero, a co-defendant and 
the leader of the parliament- 
seizure, Gen Milans del 
Bosch refused to reveal who 
It was. adding that It was not 
one of the accused. He also 
testified that others, whom he 
did not name, were also 
present at that meeting. 

The trial, at which Gen 
M ilans del Bosch and 32 
other defendants face sen- 
tences of up to 30 years’ jail, 
continues. 



Gen Milans del Bosch 


Commission puts pressure on 


Ten to raise energy taxes 


BY JOHN WYLS IN BRUSSELS 


EEC GOVERNMENTS are being 
urged strongly by the European 
Commission to raise their 
energy taxes to nip in the bud 
any complacency among con- 
sumers and investors over the 
current decline in oil prices. 

The advice is contained in the 
Commission’s quarterly econo- 
mic forecasts and policy recom- 
mendations which express 
anxiety at the threats to the 
modest 1.6 per cent growth 
rate foreseen for the Ten this 
year. 

The Commission thinks that 
higher taxes on the consumption 
of energy products would help 
demonstrate that oil-importing 
countries are not about to re- 
peat the errors of the 1970s 
which helped to magnify the 
effects of the second oil-price 
shock. 

Higher taxes would show con- 


sumers and Investors that 
“ there is no question " of relax- 
ing efforts to conserve energy 
and diversify supplies, the Com- 
mission believes. 


FINANCIAL TIMES. nubMihod diily 
except Sundays and holidays. U.S, 
subscription rotas S363.Q0 per annum. 
Second Class pOMaflO paid ai Now 
6u»j BUI (CUO'l'PPB JB pus “A N 4 JO A 
contras. 


The Commission’s more 
general recommendations indi- 
cate that Brussels, like all 
member governments, has only 
partial answers to the problems 
of reducing unemployment with- 
out endangering fiscal and mone- 
tary stability. - 

It suggests that only the UK 
and West Germany have any 
scope for a modest expansion 
of public spending. Both are 
urged not to adopt “ restric- 
tive " budgets in 1982 and to 
aim for monetary growth at 
the top end of their target 
zones. 

To some extent, the Com- 
mission's analysis shows how 
much more room for man- 
oeuvre' Sir Geoffrey Howe, the 
UK Chancellor, enjoys with his 
budget proposals today than 
many of his EEC colleagues. 

Although all Ten face an 
increase in unemployment this 


year, from an average 7.9 per 
cent in 19J1 to 9.1 per cent, 
the UK's expected 10.3 per cent 
inflation rate will be just below 
the Community average as will 
its monetary growth and its 
central government borrowing 
requirement. 

The Commission is clearly 
worried about the inflation out- 
look in Italy, Ireland and 
Greece — each has an annual 
rate above 15 . per cent while 
Greece could touch 34 per cent. 

In addition, Greece, Ireland 
and Italy, together with Den- 
mark, will need to act sharply 
to prevent ballooning budget 
deficits, the Commission sug- 
gests. 

-• European Community science 
and research ministers yester- 
day agreed to spend a further 
$680m (£372m) of EEC funds 
on research into energy produo 
tion from nuclear fusion, over 
the next five years. Renter, 
reports. 

Some ?350m of the money 
will be used to further work on 
the Joint European Toro us 


Giles Merritt reports from Brussels on the crisis at Cockerill- 


Belgian steel strikers j 



IF THE grim outlook for 
Cockerili-Sambre — Belgium’s 
crisis-torn, strikebound steel- 

making giant — were translated 
into British terras, then the 
livelihoods of well over im 
people in the UK would today 
be at risk. 

The parallell should not be 
taken too far. But it does 
explain why the future of what 
at first sight looks to be just 
another ailing European steel 
producer is in reality a poli- 
tical time-bomb that rbe Belgian 
Government is treating with 
extreme caution. 

The new Centre-Right coali- 
tion, whose leitmotif is the 
ordering of unruly state spend- 
ing and an end to the subsidis- 
ing of unviable industries, is 
treading most carefully around 
Cockertil-Sambre. Last year it 
lost the Belgian taxpayer 
BFr 17bn (£2.15mj. This year 
it could cost BFr 12bn and. 
according to McKinsey experts 
in 1985 it will be sending in a 
bill for somewhere between 
BFr 5.7bn and BFr I8.Sbn. 

If Jet alone, the Cockerili- 
Sambre charge is fail-safe pro- 
grammed to explode in the 
early part of 1985. But it must 
be defused before then. 

Under the terms of the steel 
aids code agreed last year 
between EEC member states, the 
beginning of 1985 is the dead- 
line by which national govern- 
ment bail-outs and cash aids 
must cease. So. according to the 
figures that -have just been pro- 
duced by McKinsey consultants, 
Cockerili-Sambre will on present 
showing still be deeply in the 
red at that point. 

And. bereft of rescue funds, 
Cockerili-Sambre will then be 
rapidly forced into bankruptcy 
that would in turn involve an 
industrial collapse on a scale 
unheard of in an advanced 
Western economy. The group’s 
25,000 existing steel jobs would 
go overnight, and then there 
would be the potential disap- 
pearance of the 15.000 jobs 
accounted for by the 130 sub- 
sidiary companies involved in 
operations related to Europe’s 
sixth largest steelmaker. On 
top of all that, rhere are the 
downstream “metaHo" engin- 
eering jobs in Belgium's 
hard-hit French-speaking region 
of Wallonia. where Cockerili- 
Sambre is the economic 
dynamo. In all. the steelmaker's 
collapse might mean the disap- 
pearance of more, than 100.000 
prime male wage-earning jobs 
in a Walloon economy that now 
(possesses rather less than a 
million such occupations in 
manufacturing industry: a loss 
of 10 per cenL 

But much as it may be any 
government's instinct to delay 
decisions until the last dead- 
line — and the Cockerili-Sambre 
steelworkers are now just into 
their second week of indefinite 
strike in defence of their jobs 
— the crippled Belgian steel 



tonnes of finished products, .grated production complex that 
That- in itself involved a.coni- .^octerilTs 


TnaiE- lit ftiseii IlWOiveu * C rnvWr 

plicated, schedule of cistbaete have gained 
and closures in the mynad . total capacity in flashed 
workshops and production units products would be broughtTifflt 
u — jiwr tonnes a vear and 


that line the River Meuse In the 
Lifege area and the River 
Sambre at Charleroi. 

“Option 10” also included 
ambitious modernisation plans, 
for despite joint Josses of 
BFr 25 bn, considered irrecover- 
able by tile Government, a 
further BFr 34bn was being ear- . 


down to fi.3m tonnes a year and 
some 7m wanes of erode 
steel capacity. According to 
militants of the steelworkers: 
trades unions, fay-offs would be 
about double the' original level' 
agreed and could tote! 19,000- 
men. 

The Belgian Government la 


Tuitner JHrr iwon .was oemg ■■ * w — — * — - dm.ht 

marked iso that the group would itself apparenti^ in lmlc 
have four major hot- rolling that the CpgBWjoa.B 
complexes, each relying on coo- correct. ealeu don 

timdng casting so ajf to be of probable towes in l955rr 
among the most competitive in which would, if adverse market 
Europe. _ conditions persist, ?*wed. those 

, jggj Respite possible govern- 

Bot the European Comma- •« in 1982-85 of up 

■ s “" *“ J? *“» undoing 


sion in Brussels’ was . already 
harbouring grave doubts as to 


LIT „ ... ■ , 

uaxuwuuue «« *" m nch of the new coalition's 

the long-term effectiveness of anste rlty efforts.. And 

th- oroaramme. ^SSation that Option lO ls 


the 'restructuring' programme. 
Not only did it appear based on 


LUC *CO*waww** — • , -c. 

L ~~ dangerously open-ended as a 

somewhat -optumsoc assump- has lately been driven 

tions . concerning the eventual r - few* 


Previous steel sector cutbacks have produced angry con- 
frontations in Brussels between police and steelworkers. 


tions -.concerning the eventual 
recovery of steel prices, -it also 
relied on. a 7. per cent Jncrease 
in Co ckerill-Samb re’s output at 
a time when production quotas 
were being used To prohibit 
EEC . steelmakers from over- 
supplying a weak market: The 


home to it . by the feet 
that CockeriH-Sambre’s ex- 
pected BFr 5hn “ cash- drain ” 
for. 1932 will hit BFr 3ba in the 
first quarter. . 

Just what product range 
would remain to CockertH* 


supplying A WMA UKUWl. iUG nvuiu ■ — . . — ■ - 

relationship, between- the. steel- Sambre under the more dracn- 

nn/t lka Pnmmiccinn W9« Tllfln rpstnicturins -pUlD IlOW Wl 


group will not be allowed to 
safeguard employment up until 
that I9S5 date. Britain has 
since 1979 lost more than 40 per 
cent of its steel jobs. France a 
quarter and Belgium only 7 per 
cent For reasons that have 
more to do with the European 
Coal and Steel Community 
(ECSC) than Belgium’s own 
political considerations, 

Cockerill-Samtore’s timebomb 
cannot be left to tick remorse- 
lessly on towards inevitable 
destruction. The European 
Commission will not permit it. 
the other EEC steelmakers will 
not tolerate it and Belgium 
cannot afford it. 

Persuading CockeriU-Sambre’s 
workforce t>f .the harsh realities 
of EEC steel industry restructur- 
ing would be easier if the 
Belgian steelmaker was not it- 
self riven by i-ts own internal 
rivalries. The group is in fact 
less than nine months old, and 
results more from a book- 
keeping exercise in which the 
Belgian Government con- 
solidated the two loss-making 
steel concentrations of Wall- 
oiria — Cockerill, of Liege and 
the “Triangle” group of Char- 
leroi companies led by Hainaut- 
Sambre — rather than from any 
attempt at synergy through 
merger. The result is a corpo- 
ration that is as interns Hy com- 
petitive as would be BSC- 
Italsider or BethJehem-U.S. 
Steel. The traditional jealousies 
between Li&ge and Charleroi are 
such that restructuring is being 
postlvelv hindered by the re- 
fusal of each partner to dose 
plant in favour of the other and • 
■their joint insistence that new 


investment projects should be 
evenly matched. 

The inevitable outcome -Is an 
average overcapacity level in 
Cockerili-Sambre of 50 per cent 
so that last year tile group pro- 
duced 5.5m tonnes of crude steel 
on an nstalled capacity of about 
11m tonnes. And with 80 per 
cent of that output being ex- 
ported, the country's Economic 
Affairs Minister, Mr Mark 
Eyskens, has recently pointed 
out that the Government is in 
effect giving Cockerili-Sambre 
export subsidies ranging from 
BFr 1.000-2,500 per tonne. Total 
1981 losses were BFr 17-18bn. 

The question now. of course, 
is the level to which Cockerill- 
Sambre’s capacity should be 
reduced, and where, without 
provoking political ■ turmoil 
throughout WaHonia. It is a 
conundrum that Belgium has 
been puzzling over since 1971, 
and todav the options are in- 
evitably fewer and less attrac- 
tive. in May last year, shortly 
before the. formal creation of 
Cockerili-Sambre as an 80 per 
cent state-owned concern, the 
Belgian Government agreed a 
restructuring plan known as 
“ Option 10." 

This envisaged a loss of 5,000 
jobs, most of which would .come 
from natural wastage and the 
dismissal of regular absentees. - 
-and which - whuld ' be more or 
less evenly distributed between 
Li&ge, where the workforce 
then numbered 15.500,’ and 
Charleroi, where it was 11,900. 
Over three years, total capacity 
would be cut bade to 8.5m 
tonnes of crude steel, or 7.1m 


maker and the Commission was, 
furthermore, being soured by 
the Belgian groups’ failure to 
seek permission for some of its 
new investments, notably the 
Cariain laminating unit at 
Charleroi, where capacity is 
being doubled. 

The solution to this uneasy 
state of affairs, it was agreed, 


nian restructuring plan now on 
the table is still unclear. 

But clearly the European Com- 
mission plans to press for. the 
Belgian group to extend the 
cross-frontier ventures it al- 
ready has to * limited extent 
with Luxembourg, and although 
Cockerili-Sambre describes the 
idea as “ premature.” Viscount 


state of warn it was agreed, publicly indicated 

was to pm a team of indepen- j^ween HoUaod’s' 


it^ovenTan dthe Valfil wire- 
analysts into Cockenll-Sambre . Ti - - 


to verify the ' recovery pro- 
gramme that bad in laige part 
been drawn-up by Nippon Steel 
experts. McKinsey are no 
strangers to the problems of 
Belgian steel, having in 1978 
delivered air : exhaustive report 
on the Liege industry's outlook. 
But their findings,, and their 
own proposals in what is now 

being called “ Option 12,” were 
such that they have apparently 
prompted the - - Brussels Com- 
mission's decision not to allow 
important elements . of the 
Belgian restructuring plan ; a 
full third of the investments 
contained In it are unacceptable. 

The shock of being told last 
month by Viscount Etienne 
Dayignon, Belgium's own EEC 
Commissioner : who holds the 
industry portfolio, that the Com- 
mission now favours McBQnsey's 
much more radical proposals, 
has unleashed a storm of pro- 
test .throughout .'WaHonia. 
Belgians are not so used as. 
say, Britons, to hearing bad 
news from the Commission, and 
their reaction has been tetter. 
For Option 12 is understood to 
envisage cutbacks at. Cariain 
and the scrapping of- the new 
continuous casting and in*e- 


xnaking works at Liege, .would 
be encouraged by Brussels. . .. 

Convincing the steelworkers 
of Wallonia that such savage 
pruning is now the only avail-, 
able course of action -if 
Cockerili-Sambre is to be saved 
will not, however, be easy. 
Ever since an Englishman 
called John Cockerill first 
.launched his business in. 1817, 
the region's steelmen, have 
been the aristocrats of 
Walloon industry. Although, 
paid an average 25 per cent 
more than steelworkers ecv 
ployed by Arbed in neighbour- 
ing Luxembourg, their unions, 
have so far refused to accept 
the 4-5 per cent wage reduc- 
tions that were an integral 
part of last May's restructur- 
ing agreement In their 
present angry mood, it is bard 
to see what new proposals 
from the Brussels Commission 
or the Belgian Government, 
other than a climbdown, could 
break -their declared “strike 
to the finish.” It ise harder 
still, though, to see how any 
plan that falls short of McKin- 
ney's Option 12 could save 
Cockerili-Sambre. 


Taxes rise 
in Greek 


budget 


By Yictor Walker in Athens 


GREECE’S new Socialist Govern- 
ment last night introduced a 
property tax and increased a 
wide range of other taxes in an 
attempto to combat inflation 
which last year reached 25 per 
cent. 

Introducing the budget Mr 
Manolis Drettalds, the Finance 
Minister, said the government’s 
aim was to ** promote social 
justice, revive the economy, 
reduce inflation and create the 
conditions for implementation 
of a five-year social and 
economic development plan 
from 1983. 


West may revise position on Polish debt 


BY PETER KONTAGNON, EUROMARKETS CORRESPONDENT 


However, last year the public 
sector borrowing requirement 
was equivalent to 12 per cent 
of GNF and the Government has 
had to put aside pre-election 
promises of new -schools and 
hospitals. It hopes to cut the 
public sector borrowing require- 
ment to 9 per cent of GNP this 
year. 

The Government forecasts 
total state revenue at Dr 685bn 
(£6bn), up 58.5 per cent on last 
year, and total expenditures at 
Dr 932 .2 bn (£8.1bn>. up 35 per 
cent Last year expenditures 
had been swollen because of 
earthquakes in the spring and, 
in particular, the large expen- 
ditures of the New Democracy 
Government as it sought to 
stave off defeat in last Octo- 
ber's general election. 


Work on the budget has 
brought thet Government of Dr 
Andreas Papandreou sharply 
into contact with the reality of 
Greece’s economic situation. 
Last year GNP fen by 02 per 
cent and investment by 5 per 
cent 


The Government is to in- 
crease Greece’s small social 
welfare budget by 42 . 3 per cent 
to Dr 107.4bn (£950m), while 
expenditure on defence is to 
rise 27 per cent to Dr 120.7bn 
(£l.0t>bn): the Government 
fears confrontation with Tur- 
key. 


On the revenue side, income 
tax is to be reduced for lower- 
income brackets while a pro- 
perty tax has been introduced 
on a sliding scale rising to 2 per 
cent of the value of non-indus- 
trial property worth -over 
Dr 30m. 

The government echoes its 
predecessors in saying It hopes 
to crack - down on tax evasion. 
It is also' planning to trim the 
tax reliefs of groups such as 
doctors. 


SIGNATURE OF • the agree- 
ment between Poland and 
Western banks to reschedule 
debts outstanding from last year 
might prompt Western govern- 
ments to reconsider their own 
hard-line attitude towards 
Polish debt. This prospect 
emerged in Basle yesterday as 
senior Western central bankers 
gathered for their monthly 
meeting at the Bank for Inter- 
national Settlements. 

Bankers said that if the com- 
mercial banks and Poland sign 
an agreement as expected in 
early April, a meeting of 
Western governments would 
probably be arranged shortly 


afterwards to review the posi- 
tion regarding official debt. 

' This would be the first 
gathering of creditor govern- 
ments since January, when they 
decided not to discuss a 1982 
rescheduling arrangement with 
Poland because of the military 
takeover in December. 

The signing of the commercial 
bank agreemant to defer repay- 
ment of some $2.4bn in debt 
falling due last year depends on 
Poland paying all outstanding 
arrears on 1981 interest Yester- 
day, Poland reaffirmed publicly 
that it would pay this interest, 
estimated at something over 
850m. 


Poland failed to meet an 
earlier February 15 deadline, 
partly, the central bankers said, 
because it encountered un- 
expected difficulty . in finding 
Western export markets for its 
coal production. It is generally 


felt by commercial banks that 
March 


the March; 26 deadline is 
Poland's last chance for an 
agreement with them. 

Three months after the mili- 
tary takeover, Western govern- 
ments. are understood to be 
slowly coming round to the re- 
alisatlojr that they wiH have to 
reconsider their refusal to re- 
schedule. official debts falling 
due this year; ... 


Progress with the commercial 
bank agreement offers a good 
chance to reopen the discus- 
sions. Poland, however, would 
not necessarily be invited to 
attend a first meeting . of 
Western governments. They 
would need to reach a consensus 
on an appropriate line to take 
on Polish debt. It is under- 
stood that only concerted action 
would be feasible. 

The central bankers believed 
it very unlikely that any one 
leading creditor country, such 
as Austria, would be prepared 
to enter into debt negotiations 
with Poland purely on. a bi- 
lateral basis. 


Flowers recall Warsaw 



purge 


BY CHRISTOPHER BOBfNSKJ IN WARSAW 


FLOWERS WERE latid and a 
few candles Jit yesterday at a 
plaque just inside the gate of 
Warsaw University com- 
memorating the breaking up of 
demonstrations and -a subse- 
quent purge of staff and 
students there 34 years ago 
this week. 

• Riot police units were put 
on alert and plain-clothes police- 
men mingled with passers-by cm 
the street outside in case of 
demonstrations, but students 
contented themselves with, 
flowers. 

A little way down the street 


people also placed flowers on 
railings surrounding the monu- 
ment to Adam Micltiewiczi 
Poland's leading 19th ^ century 
romantic poet, the banning of 
whose play led to the demon- 
strations in 1968. In a display 
of vigilance, the authorities 
parked two lorry loads of riot 
police and a water cannon in 
the street opposite the statue 
to ensure that the flower 
arrangement did not get otit of 
hand. • 

No attempts were made to. 
stop passers-by from carrying 
flowers as yesterday was also 


Womens Day, making it drtrpos- 
sibe to distinguish the obligatory 
flowers being carried to women 
friends and colleagues and 
those carried for politcal pur- 
poses. But the police did park 
a van next to the 'Coipemiciis 
statue a. few. yards from the 
university to prevent flowers 
being laid there. 

•_ The plaque at the university 
'was ' put up last year by staff, 
students and the local. Solidarity 
union chapter. In response, the 
authorities permitted the -estab- 
lishment of the small Grunwald 
Association, a conservative, pro- 


Commumst party, anti-semiti 
group which held a meeting c 
its national committee las 
Sunday in a gesture designed t 
remind people of the existenc 
of a group which claims 250,00 
members. This figure is though 

by many to be great! 

exaggerated. 

• Polish officials said yesterda; 
that about 100 of those internet 
since December 13 are bein; 
prosecuted. More than a dozei 
internees have applied for pasjs 
ports to emigrate following tin 
authorities’ offer that those wht 
wished could leave the country 


W. German protest party gathers strength 


BY JAMB BUCHAN IN BONN 


THE GREENS, West Germ ally’s 
small but shrill protest party, 
has given sharp warning of the 
threat it poses to the Govern- 
ment parties in regional elec- 
tions this year. 

Their remarkable perform- 
ance in Sunday's municipal 
elections in the state of Schles- 
wig Holstein spells particular 
danger for . the Social Demo- 
crats (SPD) and Free Demo- 
crats (FDP) in regional polls in 
the neighbouring states of 
Lower Saxony, in a fortnight 
and Hamburg in June. 

There is a strong possibility 
that the Greens will beat the 
Free Democrats .in the battle 
for the 5 per cent of the vote 
required for representation in 
the regional parliaments. 

The Greens started life as an. 
ecological party but has- 
branched out iixto fierce opposi- 
tion over ‘ such issues as the 
stationing of new U.S. nuclear 


missiles in West Germany. It 
increased its share of the 
Schleswig Holstein vote from. 
0.7 per cent in the 3ast poH in 
1978 to more than 5 per cent 
The SPD lost 5.9 per cent of Its 
support to muster only 34.6 per 
cent and the FDP dropped from 
7.3 per cent to. 6.8 per cent 
A party such as the Greens is 
bound to show its best .strength 
at local, council levd, where .it 
can most- effectiviy mobilise 
support against motorways or 
nuclear power plants. But it is 
clearly profiting from the 
general disillusionment . with 
the established parties, now In 
the throes, of an investigation 
into bribery , and tax’evasion in 
their handling of party contri- 
butions. 


This helps -explain -the rela- 
tively small increase registered 
by the . .Christian .Democrat 
opositionp. which could only: 
boost its share of She vote by 


- 0 B per cent in Schleswig. Hoi- . At the weekend, however a 
steia despite the^stampede group of left-wingers known’ as 
aWay from --the * .SPD. Herr the “ Frankfurt Cirde" and 
..Peter Glotz.-the Sorial Demo- headed by Herr Erhard Eooier 
crats* national party manager, the SPD disarmament cham- 
admHted v ruefully . yesterday pmn, made dear thev wnuia 

4h at ** .a e . W ny SSrS £ 

had played a role in both Sun- April for discussion of&hies- 
day's low turpont and the, drift- wig Holstein's- motion for a 
uf yoong peqple to the Greens, moratorium on all new inter- 
, It is also considered highly, mediate range missiles Success 
probable :.thaU the disputes in tins would almost oertainiv 
within - the -mfifcoui most'^ead to a bitter debate which 
.rrotaWyower a ^vamnratldbsrwiduld further damage the ores- 
creation programme, and with- tlge. of Chancellor Helmut 
in. the SPD over sew UB. mis- SchmadL 
sacs'. deployment Tu Europe ^ If' more were needed to 
Ttave Contributed - to tfae disr teouble the Chancellor's peace 
Hlusibiiment ■ - : o& mind, -Herr Manfred Cop- 

■ The Social. Democrat -Party in . .pafc. a ' left-wing deputy who 
Schleswig Holstein has:, already ^ left’ the SPD in January, 
taken- issue witi^the derision -announced , at the weekend that 
of its national executive' to J put- be -was Ybrming a new party of 
off debate whether to accept “Democratic socialists ” and 
the 580 missiles until just be- intended to : Ifight the most 
^ axe, : 4ue . : .tb be , four regional 

installed in the autumn of dle^pns 4n*Hesseh in Sep- 


il ' 




3 


Fmiai^ial Times Tuesday March 9 1982 


OVERSEAS NEWS 


Vietnamese attack corners 

Khmer Rouge forces 


CHINA STREAMLINES BUREAUCRACY 


Trade overlord appointed 


- ®Y. KATHRYN DAVIES IN -SINGAPORE 

VIETNAMESE forces and 

Kampucheans loyal to the 
Phnom ' Penh Government of 
JPraadeorHeng Samrin, have 
launched a major offensive and 
succeeded in pinning down 
Khmer Rouge guerrillas in 
western -Kampuchea close to the 
.Thai border. 

According to the Thais, a 
fierce battle continued yester- 
day following a weekend assault 
by the Vietnamese which is 
reported to have caused heavy 
casualties. In addition, Viet- 
namese troops are said to have 
been exchanging artillery fire 
with Thai forces dose to the 
frontier town of Aranyaprathet. 

Thailand says villages on its 
side of tho border have been 
bombarded from Kampuchea 
and that two civilians were 
killed while fleeing the battle 
zone 

This is the first time since 
they ousted the Khmer Rouge 
in December 1978 that the Viet- 
namese have posed a serious 


China has protested to Vietnam 
over what it describes as a seri- 
ous incident last week in which 
several Chinese fishing boats 
were shelled by Vietnamese 
naval vessels in the South China 
Sea, Tony Walker reports from 
Peking. . 

Accusing Vietnam of having 
launched a “brazen attack,” 
the Chinese say, one fishing boat 
exploded after being hit by a 
shell and gnptiufr burst ipto 
flames. 

The New China News Agency 
says some 18 people are missing 
from the boat that exploded. 


threat to Khmer Rouge enclaves 
in the mountainous region of 
western Kampuchea. 

The Thais say that Viet- 
namese troops have established 
forward bases in areas they 
have overrun, although the 
Khzner Rouge is still holding 
significant teritory. The Thais 
say they will fire back across 


the border at the Vietnamese if 
they feel that OSiai territory is 
under attack. 

But the Khzner Rouge may 
now have little option but to 
retreat from their remaining 
bases and regroup in Thailand. 
Apart from raising the spectre 
of a TnpsR influx of refugees 
s imilar to that of November 
1979, the Vietnamese offensive 
suggests that Hanoi is telling 
the five-nation Association of 
South East Asia Nations' that 
its diplomatic efforts to solve 
the Kampuchean - issue may soon 
become irrelevant. 

Thailand, together with its 
Asean partners, Singapore, the 
Philippines, Malaysia . and 
Indonesia, wants the 150, 000- 
strong Vietnamese forte to 
leave Kampuchea and a neutral, 
preferably non - Communist 
government to be installed in 
Phnom Penh. But a military 
victory by the Vietnamese and 
their Kampuchean allies would 
render this highly unlikely. 


BY TONY WALKER IN PEKING 
CHINA HAS created a new 
super Trade Ministry as a result 
of a streamlining of the 
national bureaucracy which is 
now taking place. 

The new Ministry will incor- 
porate the old Ministry of 
Foreign Trade, the Ministry of 
Economic Relations, the State 
Administrative Commission on 
Import and Export Affairs, and 
the State Foreign Investment 
Commission. It will be known 
as the Minis try of Foreign 
Trade and Economic Relations. 

The new Minister will be 61- 
yearoJd Chen Mubua, the 
highest-ranking woman in the 
state apparatus. The previous 
Minister for Foreign Trade. 
Zheng Tuobin, will become a 
Vice-Minister in the new- Minis- 
try. 

Apart from the creation of 
the new Ministry, the Standing 
Commission of the National 
People’s Congress, China's par- 
liament, which concluded an 
important meeting in Peking 
yesterday, announced the 
appointment of a number of 
new Ministers, the -abolition of 
11 Vice-Premier posts, and. the 


disbanding of several Ministries 
and commissions. 

The moves are part of the 
streamlining of the bureaucracy 
which was launched as a 
national campaign about a 
month ago. Among the com- 
missions to be abolished are the 
State Agricultural Commission, 
the Capital Construction Com- 
mission, the Machine Building 
Industry Commission, the 
Energy Commission and the 
financial and commercial group 
under the State Council, China’s 
Cabinet 

Responsibilities of these com- 
missions will be taken over by 
other Ministries and the State 
Economic Commission will have 
Its functions strengthened. 
Other Ministries affected in the 
shake-up are those of Bower 
and Water Conservancy, which 
Will be merged, and the Minis- 
try of Commerce which will 
take over the operations of the 
albChina Federation of Supply 
and Marketing Co-operatives 
and the Ministry of Food. 

Among veteran officials who 
lose some of their responsibili- 
ties is Gu Mu, a Vice-Premier, 


who sees control of the State 
Administrative Commission on 
Import and Export Affairs and 
the State Foreign Investment 
Commission pass to the new 
Trade Ministry. 

Mr Gu, who is in his late 60s. 
also faces the prospect of 
losing his Vice-Premiership as 
a result of the planned reduc- 
tion of Vice-Premiers from 13 
to two. Another apparent 
casualty of the bureaucratic 
streamlining is former Com- 
merce Minister Wang Lei, who 
was criticised about a year ago 
over his practice of eating in 
one of Peking’s best restaurants 
without paying the full cost. 

Meanwhile, the Standing 
Committee of the National 
People’s Congress has released 
details of tough new regulations 
to combat what the Chinese 
describe as “ economic crimes." 
Those engaging in crimes such 
.as smuggling, profiteering and 
speculating in black market cur- 
rency face execution. 

The death penalty has been 
introduced to cover abuses of 
special position by state func- 
tionaries under the present 



Gu Mo: displaced in the 
sweeping changes 

campaign against corrupt offi- 
cials. Previously, the toughest 
penalty for such crimes was life 

imprisonment. 

Officials who accept bribes 
could be executed under the 
new regulations. According to 
an announcement by the Stand- 
ing Committee, the measures 
arc aimed at offenders who do 
great damage to the state eco- 
nomy. 


Violence becoming a ‘respectable option’ for S. Africa’s blacks 


BY J. D. F. JONES IN JOHANNESBURG 


NEW EVIDENCE about the 
-attitudes of South African 
blacks to such vital issues as 
their support for tire banned 
African National Congress, the 
role of the tribal “ homeland " 
leaders, and the prospect of 
violent revolution, are con- 
cern tarined in the Buthelezi 
Commission report, which has 
just been released. 

The ' commission, which 
recommends a system of black- 
white powensharing for Natal 
and Kwazulu (and by implica- 
tion similar arrangements else- 
where in the republic), hired 


professional research' organisa- 
tions to carry out two attitude 
surveys of cross-sections of the 
population in both Natal and 
Kwazulu and elsewhere in the 
country. 

The report suggests that this 
material will “ form useful 
guides as to what is possible ” 
in the changing political scene 
in South Africa — wbere it re- 
peatedly emphasises the urgent 
need for movement and. re- 
form. 

A few of the findings are: 

The true strength of the 
various blade leaders is ob- 
viously of great importance. 


The new research' shows that 
the ANC leaders and Chief 
Gatsha Buthelezi himself rae 
overwhelmingly the most popu- 
lar, though with wide regional 
variations. 

In Kwazulu and Natal, Chief 
Buthelezi, who is Chief Minis- 
ter of the Kwazulu homeland 
and also leader of the Inkatha 
Zulu-based Mass party, was 
given 59 per cent support in 
response to a "spontaneous" 
question asking who are “ the 
real leaders of the black 
people," compared with 17 per 
cent for the “ANC leaders.” 
On the Witwa t ersrand the ANC 


leadens overtake him with 43 
per cent while the Chief drops 
to 17 per cent Even on the 
Witwatersrand the local leaders. 
Dr Nthatho Motiana and 
Bishop Desmond Tutu, can only 
muster 7 per cent and 6 per 
cent respectively. 

The ascendancy of Chief 
Butheleri and the. ANC also 
emerges from separate ques- 
tions that were asked on the 
Rand and winch can be com- 
pared with earlier research by 
a German team in 1977 and by 
two other studies in 1979 and 
1980. This comparison shows 
that in the past five years the 
ANC has strengthened its posi- 


tion and is undisputed first in a 
rank-order. 

In trying to gauge the mili- 
tancy of the black majority, 
the commission found that in 
asking whether “nothing will 
work except bloodshed,” the 
positive response differed 
widely: All Natal 21 per cent, 
all Witwatersrand 31 per cent, 
Soweto non-Zulu 41 per cent, 
graduates 70 per cent, Inkatha/ 
Witwatersrand 38 per cent. 

The commission says: “These 
results show that violence as 
an alternative is fast becoming 
a “respectable” option. “We 
have identified the scope of 
what appears to be a growing 


climate of revolutionary 
ideology.” 

The author of this part of 
the report. Professor Lawrie 
Schlemmer. admits that he did 
not put the option of “internal 
uprising” because he thought 
it too extreme. What he found 
was spontaneous mention of 
“either bloodshed, internal war 
or revolution" to between 98 
per cent and 100 per cent. He 
concludes: “The overwhelming 
consensus on this terrifying 
expection is very noteworthy 
indeed. Revolution is certainly 
no longer the topic only of 
frustrated Intellectuals and 
armchair radicals.” 


When questions were put 
about black attitudes towards 
the tribal homeland “nation- 
states,” the responses were 
overwhelmingly negative. Clear 
majorities agree the Kwazulu 
should not exist and that it 
should become part of a wider 
South Africa. 

The commission also con- 
cludes that tribalism has a 
stronger attraction than is often 
believed. “There is substantial 
pride In ethnic 
. . but near majority 
that ethnic charac- 
should not be 
in a political die- 


minority 
identity . 
concern 
teristics 
obliterated 
pensation.” 


Seoul plans 
to liberalise 
investment 

South Korea plans to allow 
some direct foreign ..invest- 
ment in the local stock market 
from 1985 and to fully libera- 
lise it in the 1990s. according 
to a Finance Ministry report 
to parliament, Reuter reports 
from Seoul. 

Two local trust companies 
last year launched South 
Korea’s first overseas mutual 
funds, worth $30 m, through 
the London-based Merrill 
Lynch International Bank 
and CrMit Suisse First 
Boston. 

South Korea, which hopes 
to increase such Investment 
funds, plans to establish a 
S50m Investment corporation 
in the U.S. next year to help 
issue the funds. 

Zimbabwe trial 
The first of an expected 
scries of treason trials In- 
volving Zimbabwean whites 
alleged to have plotted 
against the black majority 
Government opened in Bula- 
wayo yesterday, Reuter 
reports from Salisbury. Four 
men were led before the 
High Court In handcuffs and 
leg irons charged with con- 
spiring to foment rebellion 
in the province of Matabele- 
land. 

Peking invitation 

French and Chinese com- 
munists have prepared the 
way for restoring relations 
between tfacir two parties, 
and China has invited French 
party leader, M Georges 
March ais, to visit Peking, 
AP reports from Peking. 

Singapore deficit 

Singapore’s trade deficit 
widened to SSl.SITbn (£G37m) 
in January front S$1.595bn a 
year earlier, the Department 
of Statistics said yesterday. 
Imports fell 6 per cent to 
S$5.ll7bn while exports fell 
15 per cent to S$3.33bn. 
Total trade slowed. 


Danger of hostilities ‘has 
eased,’ Israelis say 


BY DAVID LENNON IN TEL AVIV 


rHE DANGER of hostilities 
breaking out between Israel and 
Palestinian forces in Lebanon 
appears to' have receded, accord- 
ing to Israeli officials, who yes- 
terday met Mr Philip Habib, the 
CJ.S. presidential envoy who has 
been touring the region in an 
effort to preserve tire ceasefire. 

The envoy was sent back to 
the Middle East last week, when 
an Israeli invasion of Lebanon 
appeared imminent, following 
an incursion by Palestinian 
guerrillas from Jordan to the 
Israeli-occupied West Bank. 

Officials in Jerusalem said 
yesterday that Mr Habib had 
reported to Mr Yitzhak Shamir, 
the Foreign Minister, that from 


his talks in Lebanon, Syria, 
Jordan and Sandi Arabia, he 
had the dear Impression that all 
parties were interested in main- 
taining the ceasefire. *• 

Mr £ha*nir assured Mr Habib 
that, as long as the current calm 
Was preserved in . the North, 
Israel would not do anything to 
disturb the situation. He 
repeated Jerusalem’s warning 
that, if attacks are launched 
against Israel by the guerrfllas, 
Israel would respond. 

The VS. envoy was due to 
.meet Mr Menehem - Begin, the 
Prime Minister last night and 
Mr Ariel Sharon, the Defence 
Minister, today before flying 
back to Washington. 


Sinai border disputes 
studied on the ground 


BY OUR TEL AVIV CORESPONDENT 


HSFUTES over .the demarca- 
ion of the international border 
etween Israel and Egypt after 
ie final Israeli withdrawal 
rum Sinai next month were 
xamined on the ground y ester- 
ay by Mr Kamal Hassan Ali, 
Igypt’s Foreign Minister, and 
[r Ariel Sharon, the Israeli 
tefence Minister. 

Most of the disputes concern 
nly a few yards of territory, 
ut in Rafah on the Mediter- 
mean coast and at Taba on 
ie Red Sea problems are more 
am pi ex, involving human and 
□ancial hardships. 

The town of Rafah' straddles 


the international border which 
runs across its main street 
Strict adherence to the border 
. line drawn by Britain and 
Turkey in 1906 would mean the 
destruction of over 150 houses 
and the separation of families 
living on either side of the 
frontier. 

At Taba, near Eilat on the 
Red Sea, there is a dispute 
about where the border runs. If 
the Egyptians insist on their 
interpretation, then an Israeli 
holiday village and a hotel still 
under construction will end up 
on the Egyptian side of the 
border. Israel wants them to 
r emain OU its Side. 


Bahraini 

spending 

reduced 

By Mary Frlngs m Bahrain 

THE DEPRESSED state of 
the oil market has forced a 
10 per cent spending cut on 
the tutinin Petroleum Com- 
pany, ' which owns and 
operates the island’s refinery 
with an output of 250,000 
barrels a day. The company 
is a 6040 joint venture be- 
tween. the Bahrain Govern- 
ment and Caltex Petroleum- 

Mr Don Hepburn, the 
chief executive, said (hat in 
view of reduced profit 
margins forecast fbr 1982, 
a modernisation programme 
was being slowed down al- 
though no major project was 
being cancelled. The light 
isomate project was going 
ahead on schedule, for com- 
pletion in May 1983. 

S imil ar budget reductions 
are expected to be made by 
the Bahrain National Oil 
Company, which is respon- 
sible for exploration, produc- 
tion and local marketing, and 
the Bahrain National Gas 
Company, whose liquefaction 
plant - produces propane, 
butane and naptha from asso- 
ciated gas. 

Petrol prices went up at 
Bahrain’s petrol stations 
yesterday, by 25 per cent for 
98 octane premium grade and 
50 per cent , for 92 octane. 
Premium now costs 75 fils a 
litre (about 50p a gallon) 
and regular 60 fils a litre 
(about 40p a gallon). 


NOTICE 

TO DEPOSITORS 
TheNational 



anno unces that 
with effect from 

1st April 1982 

the interest rate 
- payable on 
Tnv estmient Account 
deposits will be 

13 K* 

per annum. 


UN news body’s 
‘appetite for 
funds’ denounced 

By David Tong* 

BRITAIN yesterday launched 
its first open attack on a new 
United Nations body which it 
had hoped would help devel- 
oping countries with- their 
news communications. 

Mr Douglas Hurd. Minister 
of Stale at the Foreign Office 
said in London yesterday 
that the International Pro- 
gramme for the Development 
of Communication had shown 
that its "appetite for funds is 
far' greater than its willing- 
ness to work out a clear and 
sensible role for itself.* It 
should - not become a new 
international fund, he said. 

Bis criticism comes six 
weeks after the IPDC, a body 
grouping 35 rich and poor 
nations, held its first meeting; 
in Acapulco, Mexico. 

The IPDC was set up in 
1980, by a conference of the 
UN Educational, Scientific 
and Cultural Organisation in 
the midst of growing acrimony 
over developing countries’ 
ggtif for a “new information 
order* 

Britain, the X7.S. and West 
Germany saw their demands 
as. threatening press freedom. 
They hoped the IPDC would 
take some of the sting out of 
the debate. 

In Mexico the IPDC agreed 
to provide nearly Sim 
(£549,000) to support 17 pro- 
jects in developing countries. 
Demands for help totalled 
SSOm, though pledges from 
developed countries.- the Arab 
world and Eastern bloc 
totalled only $3mu 


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Financial limes 


Genscher wants stronger 
Nato talks procedure 


AMERICAN NEWS .■- , - ■ : 


uatemaJa David Tonge previews the resumed Law of the Sea confersice 

flttary Tough U.S. line on sea-bed mining 


BY REGINALD DALE, US. EDITOR IN WASHINGTON 


HERB. Hans-Dietrich Genscher, 
West German Foreign Minister, 
yesterday proposed strengthen- 
ing consultation procedures on 
the Atlantic Alliance by in- 
stituting a new series of infor- 
mal meetings of Nato Foreign 
Ministers. 

. He made the proposal in talks 
with Mr Alexander Haig, U.S. 
Secretary of State, the main pur- 
pose of which was to prepare for 
a number of Western minis- 
terial and summit meetings in 
the coming months. 

Herr Genscher’s suggestion is 
that the 25 Nato Foreign 
Ministers should meet alone, 
without advisers, once or twice 
a year — in much the same 
way as Foreign Ministers of 
the European Community have 
done for some years. 

The aim would be to try to 
reduce strains in the alliance in- 


formally before they develop 
into major public disputes. Mr 
Haig was yesterday still con- 
sidering the proposal, but he 
was said to believe that it might 
be a good idea. 

Bonn would like the pro- 
posal to be discussed at the 
spring meeting of Nato Foreign 
Ministers in Luxembourg next 
month, and endorsed by the 
Nato summit due to be held in 
Bonn in June, which President 
Ronald Reagan is pl anni ng to 
attend. . . . „ 

The West German initiative 
is intended to be a follow-up to 
last month's call by Sig Emilio 
Colombo, the Italian Foreign 
Minister, for a more formal 
friendship pact between the 
U.S. and Western Europe. 

While acknowledging that 
strains exist in the alliance. 
West German officials said Herr 


Genscher would repeat during 
his two-day Washington visit 
that Bonn ‘has no intention of 
going back on its decision to 
participate in the 5,000 km 
Siberia-Western Europe natural 
gas pipeline that has so angered 
Washington. 

The deal was now done and 
nothing could change it, and 
Washington was now beginning 
to understand this, the officials 
said. The same point will be 
made to Mr James Buckley, the 
US. Under-Secretary of State 
for security assistance, science 
-and technology, who is due tt 
visit Western Europe soon. 

Herr Genscher did not discuss 
with Mr Haig recent suggestions 
in Congress that a move might 
be made to withdraw some U.S. 
troops from Western Europe, 
largely in retaliation for the 
pipeline deal. 


Guatemala 
military 
candidate 
leads poll 


Chemical attacks ‘in Afghanistan’ 


WASHINGTON— Mr Walter 
Stoessel. U.S. Deputy Secretary 
of State, said yesterday that 
more than 3.000 people have 
been killed by Soviet chemical 
weapons attacks in Afghanistan. 

Mr Stoessel also told a Senate 
Foreign Relations Sub-commit- 
tee that Soviet troops had 
“engaged 'in wanton looting 
and killing ** in Kandahar, the 
second largest Afghan city, and 
that there were reports of tor- 
ture by Soviet and Afghan 
troops. 

"As a result of chemical 
attacks. 3.042 deaths attributed 
to 47 separate incidents be- 


tween the summer of 1979 and 
the summer of 1981 have been 
reported,” he said. 

Analysis of all the inform- 
ation available had led them 
to conclude that substances 
used included Irritants, incapa- 
citants, nerve agents, phosgene 
and perhaps my cotoxins and 
miistaxd. 

Afghan military defectors 
had provided information on 
Soviet use of chemical weapons 
containing deadly nerve agents, 
including where they were 
stockpiled, and when and where 
they had been used, he added. 

Mr Stoessel did not provide 


further details in liis statement, 
but his allegations were the 
toughest the Reagan Adminis- 
tration has made on the use of 
chemical warfare against anti- 
communist Afhan insurgents. 

Mr Stoessel also told the 
committee that the department 
believes the Soviet union had 
about 100,000 men in Afghani- 
stan. The previous estimate had 
been around S0,000. 

The boost in forces reflected 
the “increased difficulty that 
the Soviets are having,” he 
• added. The Soviet Union mili- 
tarily intervened in Afghanistan 
in December 1979. Agencies 


Mexican unions seek wage rise 


BY WILLIAM CHISLETT IN MEXICO CITY 


MEXICO'S trade union move- 
ment started talks yesterday 
with the Government and the 
private sector over increasing 
wages to take account of the 
inflationary impact of the peso's 
depreciation since it was floated 
on January 17. 

The inflation rale in Mexico 
before the peso was floated was 
estimated at about 30 per cent 
this year, but could be as high 
as 50 per cent, according to Sr 
Jesus Silva Herzog, Deputy 
Finance Minister. 

The peso has slipped 40 per 
cent against the U.S. dollar 
since the Mexican central bank 
allowed the currency : to float. 


and was yesterday trading at 
between 45 and 46 to -the dollar. 

Sr Silva Herzog said the 
Government hopes to persuade 
unions to take a pay rise lower 
than the extra increase in 
inflation. 

The unions, most of who 
are closely allied to the ruling 
Institutional Revolutionary 
Party, have not stated the 
amount they are seeking. But 
they want to break by a sub- 
stantial amount the 35 per cent 
ceiling fixed before die devalua- 
tion. 

Yesterday’s talks coincided 
with the announcement by the 
Bank of Mexico that the rats of 


inflation actually dropped a 
little last month. The national 
consumer index rose by 3-9 per 
cent, compared with 5 per cent 
in January. But the figure was 
largely bsed on pre-devaluation 
prices. 

The central bank also lowered 
interest rates on short-term peso 
deposits this week by 2 per cent, 
the sharpest decrease since the 
Bank of Mexico started its policy 
of fixing the rates weekly in 
1979. 

Many private companies have 
high dollar debts and have been 
calling for lower peso interest | 
rates to help them; overcome 
their problems. 


GUATEMALA CITY — Gen 
Anlbal Guevara, the Guate- 
malan Government’s military 
candidate, yesterday emerged 
ahead of three civilian candi- 
dates as counting continued 
in Guatemala's presidential 
elections, which have been 
boycotted by the Left 

Gen Guevara, a former 
Defence Minister, had about 
43 per cent of the votes 
counted, according to infor- 
mation released by the 
Government agency in charge 
of elections communications. 

Sr Mario Sandoval Alar- 
con. the candidate of the 
extreme right-wing National 
Liberation Movement, was 
r unning second, with two- 
thirds as many votes. Run- 
ning third was Sr Alejandro 
Maldonado Aguirre, backed 
by a coalition of the Christian 
Democratic Party and the 
National Renovator Party. 
Last was Sr Gostavo. Anzneto 
Vielman of the Authentic 
National Centre. 

Sr Alarcon called a Press 
conference to complain that 
results announced differed 
from what bis party’s 
observers counted at the poll- 
ing places and demanded a 
recount 

Sr Maldonado Aguirre, con- 
sidered the most moderate of 
the four right-of-centre can- 
didates, also called a press 
conference at his home, and 
accused the government of 
“ retention ” of resalts. 

No figure has been issued 
on how many Guatemalans 
voted. The latest returns 
represented counting from 
only 35 of the 562 polling 
places in the capital and less 
than a third of the 327 muni- 
cipalities nation-wide. 

Agencies 

Anotole Kaletsky in Wash- 
ington adds: The U.S. Govern- 
ment has repeatedly stated 
that an “honest and dean” 
election in Guatemala is 
likely to he a prerequisite for 
the resomption of large-scale 
military and economic aid. 

Only a token amount of 
military aid to Guatemala is 
at present pencilled into the 
Reagan Adimnistmton 's 1983 
budget request, but Mr 
Alexander Haig, the U.S. sec- 
retary of State, has stTongiy 
suggested that much bigger 
support could be made avail- ; 
able to a government with 
more democratic legitimacy 
than that of President Romeo 
Lucas Garda. 



Banco Safra SA 


And Subsidiaries 


Head Office -Rna XV delVoyembro, tf? 212, Sao Paulo, BRAZIL 
Domestic Branches: 71 

New York Branch- 1114 Avenue of the Americas, New York, USA 
Nassau Brandi- Beaumont House; Bay Street, BAHAMAS 


CONSOLIDATED BALANCE SHEET AT DECEMBER 31. 1981 


ASSETS 

Cash, Central Bank, Government Bonds and 
Due from Banks 


Allowance for Posable Loan Losses . . 

Other Assets ...» 

Fixed Assetsand Leases of Equipment 


IMHILIIXES AND STOCKHOLDER’S EQUITY 
LIABILITIES 

Deposits and Accept an ces 

Funds Borrowed-Domesric 

Funds Borrowed-Resohition 63 .......... 

Funds Borrowed-Foragn 

Other Liabilities 


MINORITY INTEREST EQUITY . 

STOCKHOLDER’S EQUITY 

Capital 

Reserves 


USS 1.000 

05 1.000 

164,320 

21.000.035 

1,103,978 

141.088381 

(13,034) 

(L665.739) 

230,212 

29.42UI4 

57,669 

7370.099 

1543,145 

397.213.890 

840,745 

307447.219 

98,416 

32577.582 

376,570 

2156S.6Q5 

77,335 

9583458 

194,858 

24902354 

1,387,924 

177376.716 

2,222 

283942 

28,951 

3.700300 

324,048 

35353332 

152399 

19353332 

1343.145 

197.213.890 


f CONSOLIDATED STATEMENTOFINCOME* YEAR EM)EDDECEMBER31, 398 1 

USS 1,000 

Operating and Non-Operating Income 579,267 

Operating and Ncm-OpCTating Expels (422,661) 

Mbnefaiy Correction of Permanent Assets 

and Stockholder's Equity . (9,188) 

Donation to Fmidaggo Safra (2382) 

Income before IncomeTax 145,036 

Income Tax Expense (62^54) 

Net Income 82,782 

Net Income Appropriated to Minority Interests 201 

Net Income Appropriated to Controlling Interests 82381 


031.000 

74.030425 

(54.016314) 


201 

82381 


(1-174.287) 

(304.497 ) 

18535.627 

(7.956.086) 

10379341 

25,673 

10353368 


Note: Exchangers^ OS 127,80 per US$1 


MeparfMtAofitooifticeWatttfaoBse 


THE U.S. yesterday returned 
to the Law of the Sea confer- 
ence in New York with a list 
of demands opposed by almost 
aH 150 countries involved. 

The conference is preparing 
a treaty on the world’s oceans 
and, after a year’s review, the 
Reagan Administration has 
finalised det ails of the changes 
it wants in the 180-page draft 
text which has taken eight 
years to negotiate. 

Hie changes concentrate on 
the rfigime which will govern 
the mining of billions- of 
dollars’ ■worth of potatoshaped 
nodules of manganese, nickel, 
cobalt and copper lying on the 
deep-sea bed. 

But developing countries have 
warned that, if necessary, they 
will sign a treaty at the 
resumed United Nations Law of 
the Sea conference in New York 
without U.S. participation. 

The U.S. position reflects the 
concerns of companies such as 


U.S. Steel, Lockheed and Ken- 
necott, which have invested 
much of the 5200m (£10$ra) $o 
far spent on deep sea mining. 

In the past two weeks, Britain 

has emerged as a bridge 

between the U.S. and the Third 
World. British companies such 
as Consolidated Gold Fields and 
Rio Tin to Zinc share U3. con- 
cerns. 

« If the treaty came in with- 
out any changes, it would be a 
serious deterrent,” Mr Gavin 
Moncrieff of CGF said yester- 
day. But they are leas dis- 
turbed than the U.S. 

The British Government in- 
sists on the importance of the 
treaty for the movement of 
warships or oil tankers; for 
defining countries’ rights off 
their shores and for “ prevent- 
ing the Law of the Sea becom- 
ing the Law of the Jungle,” as 
one diplomat says. 

Mr Douglas Hurd, M in i ster of 
State at the Foreign Office, said 
yesterday that Britain-had been 


trying to ensure that proper 
negotiations took place on/U-S. 
concerns. ■ ‘ 

However, Britain has also 
been under considerable pres- 
sure in the past few days from 
Washington — . and. a few 
British companies — to sign an 
interim treaty with th e UjL . 
West Germany and- perhaps 
France. 

This interim treaty would 

harmonise the national legisla- 
tion passed by the four main 
mining countries and allow their 
companies to share out the sea- 
bed until any Law. of the Sea 
.Treaty came into force. •• 

The interim treaty is. strongly 
opposed' by developing 
countries. • The Foreign Office 
has been insisting that .signing it 
now . would limit: Britain’s 
ability .to help the U.S. put. 
across its concerns in the UN 
conference. 

The U.S. is determined to 
ensure that its companies .will 
be guaranteed - access to the 


deepeea bed and not Tune tm- 
. fair competition from the supra- 
national enterprise envisaged in . 
the draft treaty winch will afco 
ntine the sea bed- - - 

. It is insisting on * “fair, and 

adequate” decision-making role 

ip the bodies controlling Seep 
sea mining . It dso wants ho 
ensure that the treaty cannot be 
amended without its consent; at 
present the UN conference 
works by consensus. . - 
Setting out U.S. concerns in 
London last week, Mr James 
Malone, US, Ambassador to the 
conference, left open the possi- 
bility that the U-S- might ecce/pt 
satisfaction of less than all of 
its demands. • „ - - 

Sr Alvaro De ' Soto of Pern, 
chairman of the group of ,77 
developing countries, said yes- 
terday that, regardless of the 
US. position, the Law of ' the 
Sea conference must finish nest 
month, unless its mandate from 
the UN General Assembtr is 
revised. 1 • 


Andrew Whitley in Brasilia studies the effect of an economic anomaly ' 


Brazil’s banks 


recession 


LAST WEEK’S announcement 
that Brazilian interest rates 
were unlikely to fall this year 
came as welcome news to the 
country’s bankers. They have 
grown fat in a period of high 
■interest rates at a time when 
recession has forced the indus- 
trial sector into a state of 
financial crisis 

The disparity between the 
performance of the banks and 
the manufacturing sector — 
bank profits tripled in 1981 
while gross domestic product 
fell sharply — has embarrassed 
the Government, which to a 
large extent determines in- 
terest rates. It has aiso pro- 
duced a bitter dispute between 
Sr Antonio Delfin Neto, Brazil's 
economic overlord, and -his own 
think-tank, the Gefculio Vargas 
Foundation. 

A comprehensive survey con- 
ducted by the authoritative 
business newspaper Gazeta 
MercantU revealed that net pro- 
fits in the banking sector grew 
last year at a nominal rate of 
242 per cent, equivalent in real 
terms to nearly 134 per cent 
when inflation is discounted. 

Privately-owned banks per- 
formed spectacularly. Average 
profits rose by 427 per cent com- 
pared with the results declared 
at the end of 1980. 

The federal and.state^whed 
banks, with about half the total 
deposits of the big league of 40 
banks, did less well in profit 
terms because of the much 
greater demands on them to 
lend at subsidised interest rates 
to government-favoured sectors, 
such as agriculture and housing. 
Their profits only rose by 181 
per cent before the inflation 
adjustment 

Whichever way the banks 
turned last year they made 
money. I£ they were lending 
to private industry from their 
cruzeiro resources, they 
benefited from . the wide 
“spread” between the domestic 
money market’s buying and 
selling rate; if they were pur- 
chasing government securities, 
they benefited from the! vast 
increase in the public deficit; 
if they were borrowing money 
abroad to lend at home they 
coined it. with fees and interest 


charges to the customer, 
measured in dollars, averaging 
30 per cent. 

There were also a number of 
windfalls, such, as the central, 
bank’s decision to reduce 
substantially the reserve 
requirement for bad debts. 

Eliminating the once -off 
benefits, and bearing in mind 
the central bank’s declaration 
that it will be concentrating on 
fiscal measures this year rather 
than money market operations, 
this year’s balance sheets will 
not be quite so inviting. But 
they will still be encouraging. 

Sr Pedro Conde, president of 
the Brazilian Federation of 
Bank Associations, told the 
Gazeta Mercantil that while the 
first halfs results should be 
"reasonable enough” given that 
last year’s basic conditions have 
not changed, those for the 
second half would not be so 
good. 

After declining gently late 
last year, Brazilian domestic 
interest rates are moving up 
again. The present, market rate 
is between 118 per cent for 
prime customers and 140 per 
cent for others. Taxes of 15 
per cent are added— this 
against an inflation rate which 
fell in February to a 12-month 
rate of 92 per cent 

The Government admits that 
it is policy to keep interest 
rates- high, to maintain - the 
attractiveness of foreign 
borrowing and encourage 
domestic savings. To the pleas 
of private industry that interest 
rates are leading Brazil to an 
Argentiman-style financial 
disaster, Sr Delfim coolly replies 
that idle capacity alone should 
be sufficient to generate a. 5 
per 'cent growth in gross 
domestic product in 1982. 

As the Brazilian economy . 
picks up again from last year's 
slump, credit demand will un- 
doubtedly increase, putting 
further pressure on the harsh 
loans ceiling imposed by .the 
central bank. This remains at 
last year’s level of 50 per cent 
growth, with exceptions for 
priority areas.. 

The extent to which some 
banks were able to slip out of 
the corset was highlighted by 



v% ;**; 


j&areeL r 

i ssit •. . ' . ■: $ 


Prof Delfim Neto 


Banco Itau’s . experience last 
year. Brazil’s number four 
bank, with total deposits of 
over- 51.4bn, raised its loans 
portfolio by per cent. Banco 
Safra. a fast-climbing new- 
comer, expanded its lending by 
130 per cent. • 

The "big, nationally-owned 
banks, lending at 12a per cent 
-off -a large,- free deposit base 
“made a bomb” in the opinion 
of one European banker. Un- 
doubtedly. banks like Bradesco, 
Itau, National and Unibanco, 
with their huge network of pro- 
vincial branches, were well 
placed .to benefit from the 
increase in savings which 
followed the freeing of interest 
rates at the end of 1980. ; 

■ For a nation undergoing in- 
flation in triple figures for 
many months, the level of 
savings was, in the opinion of 
bankers, “evtraordinarily high;” 
Total deposits in tire bankings 
system were up . 91 .per cent 
last year, while term, deposits, 
which make up 17 per cent of 
the .total, rose by 34 per cent.- 
Restricted credit growth and 
free interest rates, in combin- 
ation.-. must have, made :a big 
contribution to profits. But the 
Government iced, the cake for-. 
the banks yb making them the 


main channel for the attrac- 
tion of foreign exchange into 
BraziL 

A prime instrument for tins: 
policy was the requirement that 
70 per cent of all cruzeiro 
lending be directed towards 
private, Brazilian-owned com- - 
panics. Short of credit, tile 
.multinationals and state-owned 
companies were forced to 
borrow abroad. 

Brazil, met its gross borrow- 
ing- requirement comfortably, 
and the banks, Brazilian and 
foreign, profited handsomely at 
every stage of the operation.-: 

The Bank of London and 
South America, a Lloyds Bank 
subsidiary, did extremely' welL- . ' 
But by contrast. Citibank and' 
Banco Lar Brasileiro, the Chase 
associate, performed relatively 
poorly. In fact, the Brazilian 
balance sheets of the dozen or 
so foreign owned banks conceal . 
the fact that most profits on., 
dollar lending to Brazil accnred 
back in New York. London and : 
Tokyo. Access to funds was ito-_ 
portant in giving their local 
branches an edge over a Brazi- 
lian bank borrowing abroad 
from a third party, but fees 
and commissions are the same 
for everyone. - 

Brazil is now said to he the 
number one profit area, world-- 
wide, for both Citibank arid 
Chase Manhattan, xrith fee 
former’s “exposure” here un- 
officially put at S4bn. 

The Gazeta Mercantil analysis 
of 1981 balance sheets showed 
how the foreign-owned banks 
based in Brazil were among 
the most profitable, but grew at 
a slower rate than their local 
rivals in terms of deposits. . 

Foreign banks hqve simply 
had to try harder and be more 
efficient. 

Perhaps most remarkable of.' 
all about the extraordinary 
profits Brazilian banks are cur- ■ 
rently reaping is the absence of 
any protest or outcry, whether .- ■ 
from the government, the press 
or suffering industrialists. - 

“How can the National Con- 
federation of Industry criticise 
the banks “ said Sr Albano ' 
Franco,- its president, “when WE 
consider ourselves to be a- 
-champion of profits.” • 


The 








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either return the coupon t>r 'phone our Industrial . 
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U could do ypu^ualyckircompahy^iKjwer 

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PosttmTbelndustriaJ DevdopraehtUhit 
Dudley Metropolitan Borough rvum^n 
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WescMtoBandsDHIfiF.- 
Tel: Dudley 55433. exL44d9.' 


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Financial Times Tuesday March 9 1982 


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WORLD TRADE NEWS 



irate over 


lay-offs by 
foreign investors 


; vr PAUL LENDYAI IN YIENNA 
J3JANCEIXOR Bruno Kreisky, 
' 2 De leader of the ■ ruling 
’Austrian Socialist Party, has 
j fuelled growing concern about 
the implications of . foreign 
.investments. 

He gave notice to. the chair- 
man -of the board of BMW, the 
.West' German motor group and 
Siemens, the electrical giant, 
that neither the federal state 
nor the local authorities would 
provide large and extremely 
advantageous investment sub- 
sidies if the subsidiary plants 
of the companies in Austria 
dismiss domestic labour on a 
;fcig scale. 

The intervention of Dr 
Kreisky was provoked by the 
break-up of a much-publicised 
.diesel engine ..joint venture 
between BMW and Steyr- 
Daimler-Pucb of Austria, lie 
Government is clearly worried 
that the policy of major conces- 
sions to foreign investors may 
backfire. 

According to a statistical 
survey compiled by the 
Rational Bank, enterprises 
under foreign control sacked 
between 1975 and 1979 3,000 
Austrian workers.- Total employ- 
ment by 1,700 foreign -controlled 
companies was 267,000. 

According to the survey, 29 


per cent of Austrian industry 
and 6 per cent of the rest of 
the economy is controlled by 
foreign investors. West Ger- 
mans account for 34 per cent of 
the foreign capital, invested in 
Austria, followed by Switzer- 
land and Liechtenstein (32 per 
cent) and the UJS. (11 per 
cent). 

Dr Krelsky's Socialist Govern- 
ment has been proud of attract 
ing a number of major foreign 
investors. 

The BMW-Steyr venture 
involved the construction of a 
large diesel engine plant near 
the city of Steyr in upper 
Austria with an annual capacity 
of 200,000 engines. 

A few days ago, the two sides 
agreed that BMW takes over 
the 50 per cent of the Sch 800m 
(£26. 6m) equity. The £2Q0nz 
project was - to be assisted by 
large federal and local invest- 
ment grants, totalling the 
equivalent of £30m. 

Chancellor Kreisky was 
furions that he had not been 
properly informed about the 
changes in ownership and that 
the West German partner had 
not been willing to commit 
itself is a binding form in the 
joint production of a diesel 
engine motor. 


U.S., Japan to hold talks 
on trans-Pacific air rights 


BY CHARLES SMITH, PAR EAST 
JAPAN and the U.S. will make 
a final attempt to resolve their 
differences over trans-Pacific air 
traffic rights at a week-long 
conference which starts tomor- 
row near San Franeisco. 

The object of the conference 
will be to put together a 
package agreement covering 
such matters as the designation 
of a fifth U.S. airline to fly the 
Pacific, together with improved 
and expanded rights for Japan 
Air Lines. 

.. The U.S. has also demanded 
that Japan should .give its con- 
sent to a more flexible pricing 
system. But Japan appears to 
have strong reservations on this 
point. 

If the . conference succeeds, 
-the result will be to end almost 
a year of deadlock which 
culminated last December in 
the announcement of “ pro- 
visional ” sanctions by each 
government against- the other’s 
airlines. . “- . 

Failure of the talks, on the 
other hand, might .mean that 
the tLS. and Japan will cease 
to be on speaking terms where 
-aviation is concerned. 

The U.S. has emphasised that 
it sees a link between the air 
talks — which are basically 
about the right of each nation’s 
airline to earn money in the 
other's market — and the mere 
highly, publicised frictions over 
bilateral trade. 

Japan-U-S. aviation relations 


EDITOR, IN TOKYO 
became tense in the middle of 
1981 when Japan failed to ap- 
prove the designation of United 
Airlines to fly the Pacific end 
instead began to air its own 
dissatisfaction with what is 
claimed to be -a serious “im- 
balance of opportunity” in the 
existing Japan-U.S. air services 
agreement 

Points in the agreement 
which are causing particular an- 
noyance to the Japanese include 
the “reservation" of several 
U.S. destinations, including 
Seattle and Chicago, for service 
by UB. airlines only. 

Japan Air Lines also claims 
that it is severely restricted hi 
the area of “fifth freedom”— 
rights to fly beyond the US. to 
other chantries — whereas U.S. 
airlines are -free to serve other 
Far Eastern destinations beyond 
Japan. 

japan Air Lines oaku3etes 
that, because of the imbalance, 
its earnings from . routes 
covered by the existing agree- 
ment totalled around $900m 
(£473m) in 1980 whereas U.S. 
airlines collectively earned 
$L5bh. 

Figures compiled by the U.S. 
Department of Transport 
present a strongly contrasting 
picture. They credit Japan Air 
Lines with' an earnings advant- 
age of about $5Gm over the four 
U.S. airlines covering the 
region. 


MAPC0 TODAY: 


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represent a mix cOugh- and kjw-snlfar coals aid 

mctalhngknlcoals wHchcanmeettbeneedsof a 
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j Donaflonsamj Information: _ 

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Tokyo seeks 
review 
of export 
insurance 


By Our World Tod* Staff 
THE JAPANESE Ministry of 
Trade and Industry is asking 
its advisory body, the Export 
Insurance Council, to review 
the export insurance system. 

The review is nece s sa r y. 
Hit! said yesterday, because 
of the increasing risks at non- 
payment by some recipients 
of Japanese exports and 
investments. 

Mid’s disclosure of further 
evidence of the financial 
'strain which has afflicted the 
major export insurance 
agencies following the 
economic difficulties of coun- 
tries like Iran, Sudan. Zaire 
and now Poland. 

The trend became evident 
In 1980 when half the mem* 
bers of the Berne Union, 
which brings together export 
credit insurers, declared 
deficits. 


Japan's payments to ex- 
porters because of events in 
Poland are estimated at 
between Y15-20bn (up to 
£46_5m).' Last year, by com- 
parison, the Export Credits 
Guarantee Department in the 
UK paid out £60 m. 

Export insurance payments 
rose sharply m Japan last 
year, and according to Miti, 
appear to have exceeded 
receipts. Premiums for 
Japanese exporters have re- 
mained unchanged for seven 
years.' 

Bat Miti denied a Japanese 
Press report that it plans to 
double the present level of 
Insurance premiums and 
create a new system of rates 
which vary according to par- 
ticular market risks. 

The present premium rates 
nut from 0.55 to 1.0 per cent 
of the valne of the goods 
being exported. The ECGO’s 
rate for exports sold on 
short-term credit runs 
between 0.1 and 0.5 per cent. 

Industrialists, quoted by 
news agencies, said that one 
factor behind the review ot 
current premium rates is the 
growing expectation that 
heavy payments will have to 
he made te compensate 
Japanese companies hurt by 
the failure to complete the 
Bandar Khomeini petro- 
chemical complex in Iran, 


Italians angry 
over Yacyreta 
criticisms 


By jimmy Burns in Buenos Aires 
THE LATEST salvo In the 
acrimonious battle over 
Argentina's multibillion Yacy- 
reta hydroelectrioty project 
on the Parana river has been 
fired by lmpreglio of fuly. 

Sr Adolfo Moebkofsky, tra- 
pregho’s acting g eneral 
manager in Argentina, re- 
jected criticisms «f unfair 
trading practice. 

Both lmpreglio and Domex, 
of France, at the head of local 
consortiums, have been bid- 
ding for the major dvil works 
contract for Yacyreta. Last 
November, after a year of 
protracted wegotfatioas. tine 
Joint Aigefftine-Paraguayan 
management hoard respon- 
sible for the project recom- 
mended th flt the civil works 
contract should go to the 
Kalians. 

However, a final derision 
expected in February has 
been delayed apparently 
because of disagreements 
over costs involving local 
officials and the project’s two 
major creditors, the World 
and the Inter-Ameri- 
can Development Bank 
(IDS)'. 

tmpregKo confirmed that 

fis bid bad been $L7bn. and 
th»t this had been $2 66m 
more than the. rival fud made 
by Domex. However, Sr 
Mochkofsky denied allega- 
tions of seeking to influence 
local potStrcs- 

Sinee 1969, lmpregli o has 
won four major contracts 
for hydroelectric projects in 
Argentina — El Choeon, 

■ PtanJcie Banderita, Salta 
Grande, and Alicura. 

Dmnez has so far failed 
to -establish a foothold in 
Argentina and has aeeosed 
lmpreglio of exercising a de 
facto monopoly within the 
hydroeleetrieity sector. 

But lmpreglio fias . denied 
that Domex was placed in a 
disadvantageous position 

when it came to explaining 

its bid to Yaeyreta’s _ Joint 
management board. 

According to Sr Moehkof- 
sky, the decision to award 
the final contract was based 
on the view that the French 
bid had qualifications which 
were unacceptable to the 
board. 

These included a demand 
that the cost -adjusting 
mechanisms contained ' in 
the contract should not 
be binding, and that the 
time schedule for the com- 
pletion of the prbject should 
be modified. 

Impregllo's comments 
came amid reports that the 
World Bank had disagreed 
With the IDB by raising 
objections to the Italian bid. 

Yacyreta is already running 
several years behind schedule 
and the overall costs have 
risen to an estimated 5101m 
from the original $tJba 

The view of both the World 
Bank and the IDB, as yet un- 
disclosed publicly, is crucial 
since the banks’ prospected 
direct financing of nearly 
5450m implies additional 
large sums in co-financing. I 


Used machine tools find ready market 


BY LOR ME BARLING 


THE FLOOD of second-hand 
machine tools resulting from the 
recession in Britain has pro- 
vided a rich source of exports 
for HuJheris, a family-owned 
West Midlands company, which 
specialises in reconditioning 
machinery before selling it 
abroad. 


Suggestions that these exports 
are somehow undermining UK 
industry are denied strongly by 
Mr Graham Knowles, managing 
director, who points out that 
much pf the equipment is out- 
dated but suitable for develop- 
ing countries where labour costs 
are low. 

However, many buyers insist 
on thorough reconditioning 
before shipment, since com- 
ponent failures are costly in 
countries where spare parts may 
not be available and engineer- 
ing skills are limited. 

Halberts, a leading buyer at 
the recent sale of Talbot's 
major car plant at Uowood. 
estimates that 30 per cent of 
its profits are generated by 
these exports, compared with 
15 per cent IS months ago. But 
the market is highly competi- 
tive and the number of dealers 
has increased. 

Mr Knowles believes that his 
company, which is involved in 
steel stockholding and a range 
of industrial services such as 
machine -installation and trans- 
port, has an advantage over 
dealers since it can offer 
guarantees to overseas buyers. 

Many of - its machine tools 
are exported on deiayed-pay- 
ment terms, with part of the 
sum involved being held for a 


period by the buyer to ensure 
reliability of the- goods. 

The company’s acquisition of 
12 large power presses and other 
items from Linwood, at a cost 
Of around £400.000, is paying 
off rapidly. Four of the presses 
have been shipped to a 
Japanese motor manufacturer in 
South Africa, while the rest are 
in stock awaiting shipment. 

The company has around 
100,000 sq ft of storage space 


Transport them by road from 
elsewhere in the U.S. 

However, the U.S. recession 

has slowed demand recently 
and Hu I her is has been looking 
at other markets more seriously, 
particularly in the Middle and 
Far East, where ir has made a 
number of sales 

‘•Dated machine tools often 
find a ready market abroad, 
since they are easy to operate, 
unlike modern multi-operation 


Tit the Far East, Singapore is 
regarded as a prime market, 
while the growing manufactur- 
ing base of the region as a 
whole is creating demand for 
good quality machine tools. 

Within Europe, there is an in- 
creasing trade in more modern 
equipment, particularly in the 
sale of recognised machine 
look back to ihelr market of 
origin, esprcially West Ger- 
many. Scandinavian countries 



{There is enormous potential demand in countries 
such as.India, where industrial development is 
demanding new equipment, but this is being limited 
by foreign currency shortages. Similar prospects 
in Nigeria, other African countries and South 
America are limited by import controls. In the Far 
East Singapore is regarded as a prime market 
while the growing manufacturing base of 
the region is creating demand for good qualify 
machine tools.* 


at premises in the Dudley enter- 
prise zone, i he newly estab- 
lished West Midlands are a 
where rates are waived for a 
10-year period. This enables it 
to hold a range of equipment 
in stock at lower overhead costs 
than elsewhere. 

A major export market has 
been the U.S. particularly the 
east coast, since it is often 
cheaper for companies to buy 
second-hand machine tools 
shipped from the UK than to 


machines, and prices are com- 
paratively low despite transport 
costs.” Mr Knowles said. 

He believes there is enor- 
mous potential demand in 
countries such as India, where 
industrial development is de- 
manding new equipment, but 
this is being limited by foreign 
currency shortages. Similar 
prospects in Nigeria, other 
African countries and South 
America are limited by import 
controls. 


have recently been good buyers 
of a wide range of equipment. 

Hulberis, which has a total 
turnover of around £10m, has 
recently abandoned a policy of 
setting up a number of ware- 
houses abroad for machine 
storage, having decided to done 
one on Ibe U.S. east coast. 

Mr Knowles said it was felt 
that this was too cosily and that 
a good service could be pro- 
vided by dealing direct with 
UJS. customers and dealers, who 


took an increasing proportion 
of the company’s sales. 

One of the problems new 
affecting the UK market, he 
suggests, is the growing inter- 
company trade in machine tools, 
keeping them off ibe open 
market. 

“If a plant is sbul down, the 
contents will often be offered 
to a nearby company which 
will be happy to pay a low 
price fur a few machines which 
fit into its production lines,” one 
dealer said. 

Hulberis, which also 
specialises in giving a full 
appraisal of machine values to 
companies disposing of them, 
also stands io benefit in these 
circuDi stances if tl wins the re- 
conditioning work involved. 

Mr Knowles warned, however, 
that overseas buyers should 
beware of buying any second- 
hand equipment. 

He gave the example of a 
Son tii African company winch 
bought a second-hand conveyor 
sysiem in the OK whit* cost 
more, when shipped and 
installed, titan a completely 
new one. In those circum- 
stances, he suggests, the advice 
of an experienced supplier is 
valuable. 

The major source of second- 
hand machinery in Britain has 
been the niotur industry, 
which has undergone major 
rationalisation in the past two 
years. but the increased 
pressure on industry to 
become more productive will 
ensure a continued How of 

secumf-iuiUf machinery, 

dealers believe. 


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Financial Times 


■9:1 982 


UK NEWS 


Why a quick return to exchange controls would mean chaos 


THE POUND is sinking fast 
on the foreign exchanges. 

At an emergency Cabinet 
meetiun, the Governor of 
the Bank of England fs 
summoned to receive his 
instructions. 

Hnlf-an-hnur after the 
decision is taken, a battery 
of Bank switch hoard one ro- 
tors go to work on a 
prearranged pian. 

They comb their icay 
through a carefully coni’ 
piled list of telephone 
numbers. The next morn- 
ing. Operation E is 
complete. 


The teams of officials who 
until October 1073- -used to 
man the exchange-control 
department at the Bank are 
back' at their desks, ready to 
put the new regulations into 
practice. 

That, at leasr, is how some 
fpveivd imaginations in the 
City see the steps the Govern- 
mem—-either this one nr the 
next — nnsht have to take ir it 
decided to br ms back exchange 
controls. 

In practice, things wouldn’t 
be so simple. For one thing, 
rhe Bank has destroyed all its 
relevant files on companies’ 
currency operations. 

Mr John Moolenaar. a former 
senior official in the Bank's 


exchange -control department, 
savs: ’* If the Government 
wanted to bring back controls 
nvemicht. there would be abso- 
lute chaos.” 

Mr Moolenaar. who loft tee 
Bank two years ago to work on 
the cash management side at 
Imperial . Chemical Industries, 
says that conn-ols might be 
brought back cither by a 
Lahour or Social Democratic 
government, and even by the 
present one if a pre-election 
scare emerged on the foreign 
exchanges. 

" But no-one has considered 
what's involved or how difficult 
it would be ro do it — and 
whether it would have any 

effect.” 


David Marsh 
looks at the 
possible effects 
of one Budget 
option 

Mr Moolenaar keeps in touch 
regularly with his ex-colleagues. 
Of the formerly 700-strong 
exchange-control department, 
about 400 gather every sis 
months for a reunion. 

They would not want to 
return, he says. “The whole 


thing is so horrendous that the 
old exchange controllers just 
wouldn't play ball.” 

The Bank, he says, had 
pressed the Government for two 
years to abandon, exchange con- 
trols before the Conservatives 
took the decision. Administer- 
ing the controls “wa s never 
regarded as a function of the 
Bank of England. The Bank 
didn't like it” 

The Bank, he says, might ask 
the Treasury to run the controls 
if they were ever reintroduced. 
But Mr Moolenaar. who ran the 
Bank's foreign exchange control 
■school for several years, says it 
takes a year to train an ex- 
change-control official properly. 

Because the Bank has des- 


troyed all the files on companies 
and their currency operations 
any would-be controllers would 
have to ** start again - from 
scratch.” 

In the two yeans before con- 
trols ended a main argument 
for maintaining them came from 
the Department of Trade. 

it was worried about the- 
loss of statistical information 
that would ensue 

He is in a unique position to 
see the foreign exchange busi? 
■ness from both sides of. ; -the' 
fence. .After controls ended he 
heard that ICI, one of Britain's 
biggest commercial operators 
in ■ the currency and . money 
markets, needed help in the 
accounts department, - 


Livingstone plea for LT aid rejected 


BY LYNTON McLAIN, TRANSPORT 'CORRESPONDENT 


THE GOVERNMENT rejected a 
request from the Greater Lon- 
don Council yesterday for help 
to avoid the doubling of London 
Transport fares on March 21. 

An all-out strike on London 
Transport buses and tubes jn 
protest at the higher fares now 
seems certain lo go ahead 
tomorrow. Ir will be the first 
total stoppage on LT since the 
1926 general strike. 

Mr Ken Livingstone. GLC 
leader, asked the Government 
for help and a change in the 
law governing subsidies for 
London Transport at a h all- 
hour meeting with Mr David 
Howell, the Transport Secretary. 

The meeting was called to 
discuss the future of LT in 


the light of" the Law Lord's 
ruling in December that the 
GLC’s cheap fares policy, sub- 
sidised through a supplementary 
rate, was illegal. 

The talks ended without any 
agreement and with . bitter 
words and personal attacks from 
both sides. 

After the meeting, Mr Howell 
urged LT. workers to cancel 
their strike. He attacked Mr 
Livingstone and . Mr Dave 
Wetzel, (he GLC transport com- 
mittee chairman, for playing 
•• ducks and drakes with the 
public transport system.” He 
accused them of devoting “more 
lime to' their advertising cam- 
paign, encouragement of a strike 
and other illegal ncrign than 


to working out a strategy for 
LT.” 

Mr Livingstone said the talks 
had not taken the dispute any 
further forward. " X cannot see 
anything which has been said 
today which will persuade the 
trade unions not to strike on 
Wednesday." 

He believed Mr Howell was 
** very worried " about the 
problems facing LT. "He has 
an impossible task trying to 
please the Prime Minister and 
the people of London at the 
same time," Mr Livingstone 
said. - 

Mr Howell told the GLC 
leader the strike was “ totally 
pointless and damaging.” He 


urged the GLC to find out how 
Londoners could get better bus 
and Tube' services for the 
present amount of money avail- 
able to LT and a greater choice 
in the services. 

The failure of Mr HoweLl and 
Mr Livingstone to reach agree- 
ment came despite a detailed 
and unusual policy statement 
from the main board of the LT 
executive On Friday. 

Tbe board said there was 
“ now a primary need for 
Parliament to enact legislation 
to clarify London Transport's 
position.” This, is the first 
thne the board has said publicly 
the Jaw needs to be changed if 
it is to operate effectively. 


It said there was a "serious 
Jack of clarity” on two main 
issues: 

• The extent to which LT has 
an obligation to meet the needs 
of London for efficient, effective 
and economic public passenger 
transport services. 

• Tbe extent to which that 
obligatinn should require LT 
to break even, as far as practic- 
able. in each accounting period. 

Tbe LT executive, chaired by 
Sir Peter Masefield, said new 
legislation must make possible 
" strategic planning on a sound 
basis. the preparation of a 
realistic budget for 1983 and 
the aproval of capital invest- 
ments to maintain and improve 
the tube and bus system.” 


Construction volume 
lowest since 1961 


BY ANDREW TAYLOR 

VOLUME of construction output 
in Britain last year fell to its 
lowest level since 1961. Depart- 
ment of Environment figures 
show that output fell by 12.3 
per cent 

Total output at constant 
prices was valued at £9.58bn 
(£2l.2bn current prices!. 

The 1951 decline follows a 
5.1 per cent reduction in 1980. 
Annual construction output has 
fallen by almost a fifth since 
1978 and a further fall is ex- 
pected this year. 

The National Federation of 
Building Trades Employers 
appealed tnthe Chancellor to in- 
clude measures to assist con- 
constructoin activity in today's 
Budget. 

The federation said htat tlie 
industry' desperately needed 
government stimulus if capacity 
and employment were to be 
maintained. 

The only area of construction 
activtiy to enjoy any improve 
ment last year was the commer- 
ciad building sector where out- 
put rose by 5 per cent This 
largely reflects the recent up- 
surge in office building in 
Greater London, the federation 
said. 

Elsewhere falls in output have 
been spread across a wide 
range of construction activity. 


New work fell by 13.5 per cent 
while repair and maintenance 
activity, previously a growth 
sector, declined by 10.3 per cent. 

One of the worst affected 
sectors was public housing 
where output fell by almost 
37 per cent reflecting govern- 
ment spending cuts. Since 1978 
annual output has falle almost 
57 per cent. 

New private sector housing 
output fell by 12.3 per cent. 
Annual output has fallen by 
almost 36 per cent since 1978. 

The impact of Government 
spending cuts is reflected in 
figures for public sector works 
other than Tor housing where 
output fell by 9.2 per cent in 
1981 and by 26 per cent since 
1978. 

Contraction industry leaders 
are not expecting any general 
improvement in levels of acti- 
vity during 1982, in spite of 
recent government figures 
which showed a 4 per ce_* 
improvement in construction 
orders placed last year. 

Latest forecasts, produced by 
the Bu it ding and Civil Engin- 
eering Economic Development 
CommiUees. suggest output is 
likely to decline by a further 
3 per cent this year with a 
recovery not expected to occur 
until 1983. 


CP Trim rescue attempt 

BY JOHN GRIFFITHS 


NORTHERN IRELAND 

Development Agency officials 
are expected m consider today 
proposals for maintains CP 
Trim, the Belfast-based De 
Larean supplier, as a going con- 
cern. 

The company went into 
receivership yesterday at the 
behest of the agency which. put 
up £49.000 of the £100,000 share 
capital with which CP Trim was 
launched in 19SO. It a iso guaran- 
teed £1.25m in loans. 

Other shareholders arc De 
Lore, an Motor Cars, which put 
up £32,000, and Chamberlain 
Phipps, a British-based indus- 
trial group which provided the 
remaining £19,000. 

CP Trim i& the sole Northern 
Ireland company set up to 


supply seating and interior trim 
to the UK government-backed 
sports car concern. 

If today's rescue attempt fails. 
Sir Kenneth Cork. De Lorean's 
receiver, would face difficulties 
In trying 1® keep De Lorean in 
operation. 

CP Trim is understood to 
have been making adequate 
profits on the turnover — 
approaching £I0m a year — pro- 
vided by the De Lorean busi- 
ness. It had been trying to 
diversify into other products to 
lessen dependence on De Lorean. 

This included new plastics 
technology and luggage-making. 

Part of the reason for setting 
up CP Trim was to bring new 
skills into the province 


Government 
reprieves 
two assault 
vessels 

By Bridget Bloom, Defence 
Correspondent 

THE GOVERNMENT has re- 
versed its decision to phase 
out the Royal- Navy's two 
amphibious warships as part 
of the effort to cut naval 
spending. 

The reprieve of HMS Fearless 
and Intrepid will cost £3m 
this year and some £7m a 
year thereafter, according to 
the Defence Ministry'. 

The withdrawal of the two 
assault ships, whdose primary 
operational role is to lake 
Royal Maries and their equip- 
ment lo NATO's northern 
flank was announced in last 
June's dfence review. Intre- 
pid was to he retired this 
year. Fearless, which has 
been refitted, recently would 
go in 1984, earlier than 
planned. 

Mr John Knott. Defence Secre- 
tary. said in a Commons ■ 
written reply yesterday that j 
following *' the detailed re- j 
shaping ” of the defence pro- [ 
gramme snice last June. 
Fearless and Intrepid are lo 
be kept in service. 

The decision would enable 
Britain "to retain our existing 
capability to conduct flexible 
amphibious operations over- 
seas." 

Ministry officials said there was 
no connection between this 
derision and that to sell the 
aircraft carrier Invincible to 
Australia. 

The sale of Invincible, for a 
"bargain basement” price of , 
£175ro, was announced last 
month and brought a storm of 
protest. 

The roles of the two classes of 
ship are different, hut Mr IS'ott 
will hope to mollify at least 
some of his critics by yester- 
day’s decision. 

Fearless and Intrepid, can j 
carry between 4Q&700 1 
marines. 17 tanks, seven 
three-ton and 20 quarter-ton 
trucks. Each vessel of 12,120 
tons displacement, carries five 
Wessex troop-carrying heli- 
copters, four large landing 
craft and four smaller ones. 

In peacetime, they double as 
training ships for Dartmouth 
Naval College. 


Loss to Access by 
fraud rises 76% 

BY WILLIAM HALL, BANKING CORRESPONDENT 


FIAUD AGAINST Access, tbe 
largest credit-card operation, 
cost the company 76 per cent 
more in money lost last year 
than in the previous year, and 
rose to £3.3m. 

The loss is rising three times 
as fast as turnover. This indi- 
cates that credit-card crime has 
established itself as a major 
problem facing high street 
banks. 

Access's turnover rose by 32 
per cent to £1.8abn in 1981. 
Fraud rose from 0.14 per cent 
of turnover to 0.18 per cent. 
.Although the sums are small 
in total they are hitting profit- 
ability.- They are the equiva- 
lent of more than 4p per 
average Access transaction, 
which is £22.93. 

Barclaycard. the other, big 
crodit-card operator, has esti- 
mated it lost about £4m through 
credit-card crime last year. 

Access, owned by most of the 
major clearing banks with the 
exception of Barclays, released 
its 1981 figures yesterday. These 
underlined the speed . with 
which the credit card is increas- 
ing its penetration of the 
market-place. 

The number of Access card- 
holders increased by 11 per 
cent, or 69L000. to 5.35m last 
year Acess estimates there are 
still another 9m customers of its 
member-banks who have not 


obtained credit cards. 

The number of women card- 
holders is growing faster than 
men. Women now account , for 
39 per cent of the cardholder 
base, compared with 27 per cent 
seven years ago. 

The growth in the value of 
Access transactions was in line 
with the previous year but the 
drop in the inflation rate indi- 
cated the real volume growth 
rose. 

At the end of last year Access 
cardholders were borrowing 
£577m on their credit cards. 
This, was more than 50 per' cent 
higher than in tbe previous 
year. It indicates that, notwith- 
standing the relatively high in- 
terest rates, people are continu- 
ing to increase their borrowings. 

Access is processing daily 
394,000 sales vouchers and 
119,400 payment vouchers. Last 
year it processed, a total of 
129.5m items and received 4.46m 
calls from retailers checking 
credit-card authorisation. On the 
Saturday before last Christmas, 
it received 28,400 calls. 

Access’s performance statistics 
underline the speed with which 
the cashless ociety is being em- 
braced. Credit-card chiefs are 
worried, however, by the rapid 
growth in credit-card ' crime. 
This presents one of toe biggest 
obstacles to tbe cashless society. 


Personal bank loans rise 

BY OUR BANKING CORRESPONDENT 


THE BOOM in personal lending 
by High Street hanks is being 
reflected in a rapid increase in 
their share of the consumer 
credit market at the expense 
of the finance houses and other 
traditional lenders. 

In the fourth quarter of 1981, 
AGB Index, which monitors 
financial transactions in the 
personal sector, estimates that 
the consumer credit market, 
excluding home loans, rose by 
14 per cent compared with the 
same period of 1980 to £6.7bn. 
Bank loans rose by 47 per cent 
and their share of the market 
jumped from 24 per cent to 
31 per cent. 

The increase in the banks* 
personal loans has been partly 


offset by a reduction in over- 
drafts from 4 per cent of the 
total market to 2 per cent over 
the period from the final 
quarter of 1980 to 198L 
The finance houses have also 
sen a sharp fall in their market 
share from 16 per cent to 11 per 
cent. Other forms of indirect 
lending have dropped from 20 
per cent to 11 per cent 
_ Credit card borrowing has 
increased from 18 per cent to 
21 per cent and mail order 
houses have also increased 
from 6 per cent to 10 per cent 
AGB. one of Britain's biggest 
market research firms, is one 
of the few companies to regu- 
larly monitor the consumer 
credit market 


Arguments 
for nuclear 
stations 
outlined 

By David Fishlock, Science Editor 

NUCLEAR power stations 
were the most economic- way 
of generating electricity, 
provided they were built 
within the expected time and 
cost, a senior British govern- 
ment official told .Japan's 
nuclear industry yesterday. . 

Tbe three new nuclear 
stations Britain expected to 
commission' this year would 
each save about £100m a year 
compared with coal-fired 
stations, Mr Ivor Manley, 
deputy secretary responsible 
for electricity at the Depart- 
ment of Energy, told the 
annual conference of the 
Japan Atomic Indsutrial 
Forum. 

Britain intended to order 
nuclear stations only when 
they could be justified, 
economically. But Mr Manley' 
suggested that this could in- 
clude orders designed to 
strengthen the capability of 
the nuclear industry to build 
plant without costly delay.. 

Although Britain was 
exploring wavepower. wind- 
power and solar energy and 
strongly encouraging conser- 
vation, M it is evident that a 
crucial element in our future 
energy mix must be nuclear 
power.” he said. 

The average cost of produc- 
ing nuclear . electricity in 
Britain last year was 1.65p 
per kilowatt-hour, compared 
with 1.8 Sp for coal and 2.62p 
for oil. • . 

. Mr Manley claimed that 
anti-nuclear opinion had not 
been a severe constraint in 
the UK. He described the 
- forthcoming public Inquiry at. 
SizewcTV as an example of. 
how Britain demonstrated 
that there were “ reasonable 
answers to reasonable fears.” 

Dr Hans Blix, director- 
general of the International 
' Atomic Energy Agency, told . 
the conference that by 1985 
nuclear energy would account 
for 17 per cent of world elec- 
tricity capacity. 

France would he obtaining 
60 per emit of its electricity 
from nuclear energy, Sweden 
and Belgium 50 per cent, West 
Germany 20 per cent, the UJ5- 
17 per cent and Japan 15 per 
cent 

Dr Blix said the Soviet 
Union and East European 
countries “remain commit- 
ted to the rapid expansion of 
nuclear power, which seems 
limited only by constraints on 
manufacturing capacity.? \ . 

But local opposition fre- 
quently frustrated the “ gener- 
ally -positive policies ” of 
centra] government in West 
Germany, Spain, Switzerland 
“and even In the UK,” he 
said. Be forecast modest 
growth, “weakest in Switzer- 
land, strongest in Spain.” 

He believed that eventually 
the facts about the nuclear 
industry and its record — ■ 

“ which is very good would 
shape both popular and 
political perceptions of it. He 
was not In favour of using 
propaganda to manipulate 
opinion. 


v • /, * ; ’ I * ■ 



aa :mtm 



Making money from 



Mrs Doris Wheatley 


EVERYONE Is faced at 
some time with trying to 
understand explanatory leaf- 
lets on how to fill in tax 
forms or to operate compli- 
cated electronic gadgetry. 

Doris Wheatley, former 
Girton don, sympathises with 
and profits from the public's 
increasing difficulty In wrest- 
ling with garbled Inform- 
ation presented by govern- 
ment and industry. So much - 
so that she runs her own 
business in Cambridge, 
specialising in simplifying 
complicated issues. 

Her company is Cambridge 
Communication. Among other 
tilings it composes instruction 
leaflets for complicated mach- 
inery, training manuals for 
the engineering industry, 
brochures to explain the 
arguments for and against 
company pension schemes 
and on the workings of the 
European Economic Com- 
munity. instructions ou sel- 
ling sophisticated drugs to 
the medical profession, and 
pamphlets on the dangers of - 
imbibing too much alcohol. 


Elaine Williams reports on a 
Cambridge company which 
simplifies communication 


Cambridge Communication’s 
several client organisations 
include Sony, English China 
Clays and the European 
Commission. 

The work of companies like 
that of Mrs Wheatley would 
no doubt be lauded by the 
National Consumers’ Council 
and by the Plain English Cam* 
palgn, which this year started 
a movement to Introduce 
simple language to official 
forms, guides, letters and in- 
surance policies. 

One NCC researcher • esti- 
mates that at least £lm a 
year could be saved for the 
taxpayer If there was merely 
a 1 per cent improvement in 
form-filling efficiency. 

While public money Is 
wasted producing gobble- 
degook — the NCC 1 * descrip- 
tion for garbled English — 


Mrs Wheatley says Industry 
- is producing its share of con- 
fusing technical jargon. 

Manufacturers provide a 
mass of technical jargon 
Which confuses the user Mrs 
Wheatley says. “ But you 
don’t want to know what 
happens inside a television 
set- every time you switch 
channels.” 

A recent Cambridge Com- 
munication task was produc- 
ing a booklet for Sony- to 
explain the operation of a 
video-cassette recorder. . The 
company had to translate a 
Japanese* English handbook 
into something comprehen- 
sible even to a child. - 

A video-cassette recorder is 

a complex electronic gadget 
Many early users found they 
could not understand tbe 
operating instruction suf- 


ficiently to record success- 
fully. 

Mrs Wheatley sees a large 
market. She also sees a 
range of opportunities in 
providing better communica- 
tions between employers and 
workforces*. . . 

Sh e believes economic, 
stringency Is forcing com- 
panies to become better com- 
municators, .. 

Cambridge Communication . 
is particularly proud of the 
1980 annual report It .pro- 
duced for . English China 
Clays. This explained to the 
workforce the effect of Infla- 
tion on the group’s perform- 
ance. It showed that in spite.' 
of increased, profits, the. 
group’s financial position had 
actually deteriorated because 
of inflationary forces. '. 1 

Mrs Wheatley ' believes, ■ 
however, that the list of appo- 
rtions for turning masses iff 
complicated Information into 
simple . statements are legion ' 
and that advances In techno- 
logy are compounding the 
problem. 






BY JOHN MOORE, CITY. COflJLE^ONKNT 


TOUGH Department of Trade 
proposals governing licensed 
dealers . and investment 
manegers have been welcomed 
by tiie. body representing them. 

Tbe Body, the National Associ- 
ation of Security Dealers- and 

Investment Managers, irr its sub- 
mission to the department on 
'the proposed rules, sounds notes 
of caution and reservation/ 

The association feels the rules 
are too widely drawn; The 
department, spurred by recent 
problems.. may have overlooked 
"the fact that their proposals 
will affect the other activities of 
many licensed dealers’. 1 *. 

The association feels ' invest- 
ment management has been 
overemphasised. . 

Many association members 
deal in securities not investment 
management and, therefore, find 
their businesses affected by the 
department's approach to the 
review. 

The association feels existing 
legislation offers the depart- 
ment .’more room for" initiative 
in controlling any abuse. It 
regrets “that the department 
has not been- prepared to test 
further the powers . already 
ava table to.. It” : 

The • general proposals- for 
closer supervision of investment 
management — including the 
separation of accounts — are 
accepted. 

The association agrees with 


the need for a dear investment 
management — including the 
separation of ’ accounts T- are 
accepted. 

The association agrees with 
the need for a dear investment 

management agreement between- 
an investment manager and hia 

Client. : ' 

It also supports the need to 
protect the rights of clients to 
terminate agreements and. the 
. requirements proposed by the 
department for managers . .to 
provide some form of insurance, 
unless they are protecting their 
clients in other ways; 

The association agrees, with 
the department’s plaBS “-to act 
more commercially with regard 
to the information req uire d, ia- 
connection with the Issue nt 
licences to deal iii securities. 1 * 

The association feels: the 
character of initial applicants 
for licences from the depart* 
ment has been considered -insuf- 
ficiently. It welcomes the idea 
that future licence renewals 
will only occur once q firms pro. 
vide information on the opera- 
tion of their companies, in fhe 
period before renewal- ; v . 

Rules are being formulated' 
for licensed dealers after pubBe 
concern over a spate of bank- 
ruptcies In the sector, most 
notably that of the Norton 
Warburg group. 

The department’s proposal* 
have ben circulated in the City 
for consultation before tbe 
regulations are finally framed. 


Wool textile industry tells 
Government its needs 

BY ANTHONY MORETON. TEXTILES CORRESPONDENT 


THE WOOL ' textile Industry 
yesterday, put .a .six-point plan 
to. tbe Government to restore 
Its competitiveness and . main- 
tain its position as an exporter. 

The Industry, faded a crisis 
of confidence due to factors out- 
side its' oobtroL 'Mr Alan 
Clough, president of the Con- 
federation of British Wool Tex- 
tiles, told Mr Kenneth Baker, 
Minister of State, Industry De- 
partment 

- The confederation's deputa- 
tion sought to impress on the 
minister tee disadvantages suf- 
fered by tbe UK industry com- 
pared with the industry in 
France, West Germany and 
Italy.- These were highlighted 
in the six-volume Werner re- 
port. commissioned by -tee de- 
partment and published at the 
end of last year. - 

The report said the industry’s 
competitiveness was -substan- 
tially dependent on factors 
beyond its control, such as oil 
prices and interest rate, levels. 

It also drew attention to a 
lack of unity in European Eco- 
nomic Community policy and 
the way iix which other. Euro- 
pean governments assisted 
their own industries. . 

Since The Werner report was 
presented to the Government, 


according to the confederation, 
that help has been extended fan -' 
many cases. ' ' ! 

The confederation asked the : 
Government to formulate 
urgently a strategy to stop fur- .; 
ther reduction of capacity, it : 
also asked that conditions be 
created in which the UK in- 
dustry could trade equally with " 
those countries receiving state 
aid. 

The minister was told of the 
need to introduce an assistance 
scheme similar to that ' in- 
France: to cut interest rates; to - 
give more support to product »" 
development and for improved 
access to overseas markets, 
especially those which were 
large suppliers to tee UK. 

According to tee confedera- 
tion. the Werner report showed 1 
the UK industry was operating 
in an economic and industrial 
environment much less favour- 
able than that enjoyed by many 
of those in Europe. 

• Mr Norman Sussman, British 
Clothing Industry Association 
chairman, warned the Govern- 
ment last night not to oversell 
the extension of the Multi- 
Fibre Arrangement negotiated 
in Geneva just before Christ- 
mas. "An MFA which is tougher 
without being tough enough 
will he ineffectual,” ha said. 


OBITUARY 


Lord Blakenham 


LORD BLAKENHAM, who died 
of ;a stroke 'at the. weekend aged 
.71, was a former Conservative 
Party chai r man and Labour 
Minister. ' 

His life was one .of virtually 
continuous political service. An 
alderman on the London County 
Council before V teat war, he 
became Conservative MP for 
WQddbridge, Suffolk, in 1945. 
Du rin g the war, he sored in 
tlte army. 

' As Mr John Hugh ! Hare, he ' 
was Minister of state for 
Colonial Affairs, then. Secretary 
of ■ State for. War under tee 
premiership of Sir ' Anthony 
Eden. /. . y_ - 

He became Minister of -Agri- 
culture;'. Fisheries and Food in 
1958 then Minister of Labour in 
I960, taking orar tee port from 
M? Edward Heath when the 
latter became Lord- Privy SeaL 

He held office until 1963, 
when he was appointed to the 
chairmanship of. the Conserva- 
tive Party at the request pf Lord 
Home, then Sir Alec Douglas 
Home: Lord /Blakenham retired 
from politics in 1965 because of 
ill health. ■ 


However, it was during 
closing months of his chainr 
ship teat he set in train me 
to democratise the Conse 
tivess system of choosing 
leader— a system which resul 
in the choice of Mr Heath 
party leader in succession 
Alec. 

Lord Blakenham’s polit 
career displayed considers 
administrative, rather t3 
political, talents. His period 
office as Minister of Laboui 
remembered as the apogee 
has career, 

He was married to ' 
Honourable Beryl Fears 
daughter of the second V3sco 
Cowdrey and sister of 
present (third) Viscount, win 
^haarman of S. Pearson and S 
I^rd Blakenham was the brot 
« the Honourable Alan Hz 
chairman of the Financial Tin 

In addition to his politi 
career. Lord Blakenham tool 
dose interest in charitable z 

jSrS'? Y as chairmar 

£"52 L T 2“ t . i,nd treasurer 
the Royal Horticultural Socie 


‘Real hopes 3 of lower 
mortgage interest rate 


Vf WfOMH COGWWffi 

■THERE ARE real hopes ‘that tea 
mortgage .interest rat* witt ;be 
much.lower .hy.tha^cnd, of the. 
year, Mr Alan <Sunaaang, chair- 
- Bu Societies 

Assorigtioiu said-yesterday. 

■An "assoofatiouV; meeting-' bn 
Fftpay ' « expected^ to rfecoin< 
mefld .a: fall jnortgagd 

rate from its rig30G# 25 : pir cent 
to. 13i per .cewL^.w:- • • 

is en-_ 

tour aging teat interest sates are 

this 

yeaxi beirfffe'to get our 
rajas - &rm anjd^gS . teem 
down/?- .. 

15 p«-?.cent mortgage^ rate £afi 


tested too -long. V. 

V‘Wa hope that we are going 

ttEF* ta *«***« 

that- will 

prompt - people to fed their 
budgets are able to stretch and 
teteWwer iKmes.” he said. 

society 

.said- -at. the .exhibition that it' 
■was lanncWng a lew-start mort- 
* gage /. scheme. It will enable 
.young, people, who expect their 
inedme- -to -rise to borrow more 
\th abnormal against their cur- 
rwit :.“iacOTne,' ■ -substantially 
redncBd'JniteUhly. payments dur- 
•in* tee -firrt/ three years 'of the 
mortgage and free life cover for 
tea main : wage earner daring 
. tee three yeaxs. 





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financial Times Tuesday March 9 19S2 




UK NEWS 


Food companies 
face stiff foreign 
competition 


;V BT GMCTH GRIFFITHS 

■*IH EFOOD and drink industry 
lias been outstripped in pro- 
ductivity by overseas competi- 
tors, according to a National 
Economic Development Office 
report published today. 

NEDO undertook a series of 
international comparisons, with 
particular emphasis on com- 
panies in West Germany. 

The UK industry performed 
relatively well against other 
sectors of the economy but had 
been caught in a vicious circle 
of much lower levels of value 
added per head, lower invest- 
ment, slower growth rates, and 
less efficient use of capital. 

. Not all the shortcomings were 
its own fault. Low pro fit m ar- 
gins and a squeeze on costs am- 
posed by the efficient large- 
scale retail chains have le d to 
food and drink manufacturers 
often not making what, they con- 
sider sufficient returns on in- 
vestment Porr quality pack- 
aging led in some cases to 
breakages disrupting produc- 
tion lines. . . . 

■ ■ The report was produced by 
NEDO’s food and drink .manu- 
facturing economic develop- 
ment committee., 

‘ Its prescriptions for improv- 
ing productivity are long tern 

more emphasis on training, 

greater consultation between 
management and . employees, 
and a more agressive attitude to 
companies to .growth .opport- 
unities. particularly exports. 

Sir Jacobs Clesainson, Reclutt 
‘ and Colman’s chairman and the 
committee’s chairman, said he 
, did not envisage any substantial 
reduction in the industry’s 
workforce from pursuing the 
policies outlined. 


In the past two years com- 
panies have been reducing their 
workforces, in some cases 
substantially. 

• Sir James said the industry 
had found that faster rates of 
investment depended to a large 
extent on. increasing efficiency 
much faster which, in turn, 
partly depended on much faster 
rates of investment 
The climate was unfavourable 
for consumers to buy more ex- 
pensive food, so boosting value 
added manufacture. Sales 
volumes were flat and the 
opportunities lay in exports. 

However, the greatest profit 
opportunities were in the UK 
and several companies last 
year reported pr oble ms over 
their French in vestments. Sir 
James said. 

Food and drink companies 
should develop closer relations 
with UK suppliers of packaging 
machinery to ensure the latter 
can meet companies’ require- 
ments competitively. Overseas 
supplies may he uneconomic or 
less convenient in future. 

There should be a fresh look 
at using capital equipment 
more extensively, and a chew- 
list made of ways of boosting 
productivity in admin istr ation, 
"maintenance and distribution, 
the report says. 

NEDO has produced a video 
film to accompany the report 
Improving productivity m 
the food and drink manufactur- 
ing industry, the case, for a 
joint- approach. Free from 
NEDO books, National 
Economic Development Office, 
Millbank Tower, MUIbank, 
London, SW1. 


Aerospace industry unites to back a new fighter aircraft 

_ . ■ ■ Mfrfmi rads used in civil I 


THE AEROSPACE industry is 
spending several mHISou 
pounds of its own money on 
the early stages of design and 
development of *' fighter • air- 
craft for the late 19S0s — the 
British Aerospace- P-110. 

This will have a multi-role 
capability for hifih-altitad* air- 
to-air combat and low-level 
battlefield support, although it 
is aimed initially at' meeting 
the RAFs eventual require- 
ment for a replacement for its 

200 ageing Jaguar fighters — 
the RAFs requirement is known 
as Air Staff Target 403. 

It win be a single-seat, twin- 
engined, stgierstHuc Delta- 
winged cdTcraft, using deveflop- 
meuts of the RoBs-Royce RB- 
199 engines powering t he Tor - 
nado multi-role combat aircraft, 
which it is intended to comple* 
meat in squadron service. It 
will have short take-off and 
landing capability. 

The P-110 would be an attrac- 
tive aircraft for many overseas 


countries, especially in the 
Middle East The aneospaee in- 
dustry believes it would 
generate substantial export sates 
over a long period. 

The industry is united in 
wanting to see such an aircraft 
devetoped. It believes the P- 
110 wHl be necessarymititariJy 
in the late 1980s and that it 
wfiH fill a gap in military air- 
craft procurement in the period 
when Tornado production will 
be running down. 

It also thinks tine P-110 could 
provide employment for up to 
50,000 when in full production. 
This is one reason the project 
is supported so widely. Not only 
British Aerospace and Rolls- 
Royce are patttag-in money, so 
are equipment companies such 
as Dowty, Ferranti,' Smiths In- 
dustries and Marconi Avionics, 
with many others involved or 
expressing interest. 

The total development cotf 
of the P-110 eventuany nxrld be 
as much as £lbn, so sooner or 


The Government cannot ignore 
this initiative, says Michael Donne 


later Government and RAF in- 
volvement will be necessary. 
The compand es have been dis- 
cussing the venture with the 
RAF and Defence Ministry for 
some time, but go far there is 
no government commitment. 

The industry has also been 
having talks on possible col- 
laboration with companies over- 
seas, both in Western Europe 
and the Middle East and on in- 
vestment' from countries such 
as Saudi Arabia and Jordan. 
Both have expressed interest. 

Developing a European Com- 
bat Aircraft (ECA) was dis- 
cussed with the West German 
and French aerospace industries, 
governments and air forces, but 
foundered because of differences 
about performance require- 
ments and time-scale. 


Nevertheless, it is believed 
the accolade of an RAF order, 
with a UK Government cash 
commitment, will be the most 
likelv way of getting the air- 
craft launched. This is why the 
industry is so anxious to see 
the talks with Whitehall press 
ahead. . 

The P-110 will be much 
cheaper to develop than the 
Tornado. This is largely 
because it will be using much 
of the equipment developed for 
that aircraft, including the 
Rolls-Royce RB-199 engines. 

A feature of the P-110 will 
be the extensive use of new 
materials. About 40 per cent 
of the airframe will be made 
from carhnn fibre. Another 
feature will be electronic con- 
trols t “ fly-bywire ") instead of 


the control rods used in civil 
and military aircraft 

The emphasis in the design 
will be to get a versatile, rugged 
and comparatively low-cost 
fighter, without sacrificing 
performance. Work is well 
ahead on the design, whit* it 
is hoped can be completed tins 
year. 

The engineers are working on 
costs and posable work-sharing 
arrangements with potential col* 
I a bora tors, so much of the work 
norxnallv done in a new project 
—feasibility studies, project 
definition and initial design- 
will be completed before any 
Government cash is involved. 

This could help to shorten 
the overall development time- 
scale and the cost to govern- 
ment funds. 

What the P-110 really means, 
however, is that for the first 
time for many years the aero- 
space industry has taken the 
initiative. 


Proposing a new combat ah» 
craft to the RAF is not new, 
but financing its initial design 
and development at a cost of 
several million pounds is* 
especially since the F-110 is an 
industrywide venture. 

It is an initiative neither the 
RAF nor the Government can 
ignore. The aerospace industry 
is just as good— if not better— 
as Whitehall planners in 
discerning long-term trends in 
military aircraft design and 
development 

The P*110 Incorporates the 
essence of this thinking as well 
as much of what the RAF wants 
to see in its next military air- 
craft Its specification, con- 
tained in AST-403, has been 
circulated widely throughout 
the industry. 

Any eventual aircraft that 
emerges may not necessarily 
look precisely like the P-110, 
but much of the preliminary- 
work has been done, cutting 
both the cost and time-scale. 


Cash and carrys seek drinks boost 


BY GARETH GRIFFITHS 

BRITAIN'S cash and cany com- 
panies aim to boost their share 
of the drinks trade after the 
brewers’ tied house system has 
been reviewed by the European 
Commission. 

The cash and carry sector 
believes it will be able to com- 
pete successfully with brewers 
supplying pubs with wine, 
spirits and packaged beers. 
Most brewers require tenants 


to sen particular tied products. 

Exemption from the Euro- 
pean Economic Community's 
competition laws for the 
brewers’ tied arrangements 
runs out at the end of this year. 
The EEC is now reviewing tied 
houses. 

The National Federation of 
Wholesale Grocers’ conference 
at Stratford-upon-Avon yester- 
day heard that Britain's 500 


cash' and cany companies 
hoped to double the amount of 
drinks business they controL 

Mr Len Jackson, federation 
director, said cash and cany 
operators sold drinks more 
cheaply than brewers, the end 
of the tie "would give the 
public greater freedom of 
choice and lower prices as 
national distribution costs con- 
tinued to rise.” 


Offer to Laker passengers qualified 


BY ALAN FRIEDMAN 

MR ROLAND "Tiny" Rowland, 
chief executive of Lonrho, 
yesterday qualified bis offer to 
pay up to £700,000 to reimburse 
passengers who lost their money 
when Laker Airways collapsed 
last month. 

Mr Rowland, who is working 
with Sir Freddie Laker to plan 
a new airline, said cheques were 


not being sent out against all 
Haim s, which would amount to 
several millions of pounds. 
Instead, the claims would be 
dealt with rna" pro rata basis 
after the liquidators have first 
considered them and paid such 
dividends as may be available." 

Mr Rowland said: “Since I 
made the offer in a television 
interview, checking and sort- 
ing the claims has taken time; 


date- stamping 

the 

claims as 

they 

travel agenti! 

had 


we arc 
individual 
arrive." 
Many 


him to compensate passengers 
whose bookings they handled. 
"I can’t do that" said Mr 
Rowland. 

He said his £Tni).onn offer had 
been a "spontaneous gesture of 
feeling for Sir Freddie." 


Ship’s rust-proofing was 
‘disastrous,’ court told 

BY RAYMOND HUGHES, LAW COURTS CORRESPONDENT 

p & O bad sued Swam Ranter, 
hod been 


CLAIMS totalling more tiian 
£1.5m were made in, the Com- 
mercial Court yesterday against 
the manufacturers of an anti- 
rust product - . ^ 

The ‘court was told that when 
the insides of ballast tanks on 
a ship were coated 
flux, manufactured by 
Dove Bitumastic,\ a. member of 
the ' Dufay ' group, the results 
had been “nothing short of 
a&sastroas.” ■ " , 

Wailes Dove is being sued 
bv P & O, owners of the lo.uuu- 
ton Gandora, built by Swan 
Hunter Shipbuilders. . 

Mr Anthony Evans. QC. pc 
p i O told Mr Justice Parker 
that in September 1076. five 
months after tbe^vessel had 
been delivered, the Bitufiux 
coating broke down and repairs 
were carried out to. some of the 
53a by Wailes Dove in July 

19 ln October 1977 there was a 
further breakdown, as a. result 
of which all the tanks had to 
be re-coated with a 
material. 

ing would be expected to last 
eight to 10 years. ■ 


but that dispute — ^ . 

settled. Swan Hunter had 
agreed to pay £750,000 -and costs. 

p Sc O now claimed about 
£855.000 from Wailes Dove, 
against whom Swan Banter had 
a clafim for the £750,000. 

WaMei Dove is contesting roe 
claims! and the' case as expected 
to last four to ax weeks. 

Mr Evans said that P & Os 
claim against WaSes Dove was 
based on alleged breach of war- 
ranty and negligence, arming 
from the claims made for snn- 
ftir in the manufacturer's data 

sheet- « is i a 

Expert -witnesses for r & u 
and Swan Hunter were agreed 
that Bitufiux was ftotaSHy unsuit- 
able for coating 

It was not watertight and bad 
poor adhesion. 

Wailes Dove s expJ^ wmuQ 

suggest that the fault bad 
developed because 
tion of the tank surface 
and sulphur from the otano- 
sphere before the Bitufiux was 

applied. .. 

The hearing continues today. 


Big companies to switch 
from oil to coal heating 


r BY MAURICE SAMUB50N 

EXPRESS dairies sndjhmtop 
among leading UK comr 
Sues planning to swttdi from 

SI' to coal for heatios and pro- 

.pK -work, according to me 
National CmI Board's maiket- 

inS Th^to nt «mp a oi« f . n 

named by the board after is dwr 

fStoiy 1 ^ roe 0 N^tih-Wertfrom 
S? to* coal, to provide process 

hC The board is hoping 

gfciH as an energy ;I»n*3iaser 

wfll influence other bigusersto 
Suroto coal despite the world 

OS ia“ which is to 

on converting to «w» < 

ash factory at jJjSSe 

said yesterday this wotodeMbte 

it to supply the ^ 

soda ash and to make profit awe 


exports- The glass and. chrari- 
cads industry are the m own 
users of soda a A. 

However, ICI wouM n ot ha ve 
converted the 

it had not .been helped under 
the Government’s boiler conver- 
sion grants scheme. Its grant is 
about 35 per cent of the capital 
cost of conversion. 

The 25 per cent grant for roe 
Lostock project is J£e tosses* 
allotted by the Government 
Sder the boiler converse* 
erheme. It has now committed 
more than Man outofthe £50m 
which it matte 2* ra g^ Vi ^ 
two years ending Mamin, rc»s. 

The ChanceDor Ss expected tp 
Min ounce in todays - Budget 
that tire scheme is being epepea 
to non -manu factoring industry 
to hasten the switch to coal and 
to stimulate the bodiemrakm# 
industry. 


Computerised security 
monitoring station opens 

BY NICK GARNETT, NORTHERN CORWESPOIWBNIT 

THE FIRST computerised Si n gh^a^Nottingham as 
central station for ^° 1 njt0 "^ bridging Points. A fully_ auto- 
seeurity in industrial. mated central station will be 

zncFcial and private pror^” Stened in London next yeaTv 
was ^opened » M * nL ? < S e f ADT, which has introduced 
yesterday -as the (gecnrwr ful i y automated 
system which will eventually ^ the U.S., said so* 

cover most of Britain. t computerisation aBoww 

Central stations monitor not response to 

only emergency alarms at sub- ^ ^ sugwnber 
scriber companies and home* Detailed information 

bat also normal da^v joriong subscribed 

and uitincJdn? fWfj ™J! ^ and dose wrtaK« *nd 
factories, banks and shops and schedules wi H be bgd 

night security patrols. by the computer- Temporary 

The station. ®P*? e L5 t eris irregular infonnation,^^ 

Janies Anderton. Mancbe.tes or change m a stores 

Chief Constable, isrun L f mjemrie tfimes, can be fed m by 
V& company -4DT Security opera tor- . ■ 

Systems, . 14r Anderton, m qp«n«« ®f 

. The ronversinn of its enrt reuitre said burglary 
ins manual station Man- 1 0^-* ^as not' treated 

Chester to full automation is enough by the public. 

linked to the automata « senou^j 


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8 


Financial Times / 


UK NEWS - LABOUR 


Labour board cuts ‘threat to dockers’ 


BY BRIAN GROOM, LABOUR STAFF 


PROPOSED CUTS in the 
National Dock Labour Board 
would prevent it discharging 
its responsibilities, Mr Ritchie 
Pearce, chairman on the un- 
official National Ports Shop 
Stewards' . Committee, said 

yesterday. 

He said there was a danger 
dockers and . employers in 
major ports could lose control 
over some of their own affairs 
if the present 21 local labour 
boards were replaced by five 
regional bodies. 

The committee has called for 
a one-day national dock strike 
in protest at the proposals. Mr 


Pearce said they were a 
"further whittling away" of 
dockers' hard-won rights. 

The influence of the unofficial 
committee has declined and 
there are doubts about its 
ability to stage an effective 
strike without the backing of 
the Transport and General 
Workers' Union. 

■ Employees fear, however, 
that it may have found an issue' 
which will win support. 
Britain' 18.000 registered 
dockers are nervous about the 
board’s plans, the likelihood of 
another batch of voluntary 
redundancies this year, and 


what they fear is growing 
pressure to alter their unique 
employment rights. 

The labour board, through 
which employers and union 

representatives jointly regulate 

dockers' numbers and working 
conditions, proposed reducing 
the number nf local boards in a 
bid to prevent a deficit of £7m 

building up by 19S5. 

Mr Pearce, leader of South- 
ampton’s dockers, said the 
interests of Southampton, Wey- 
mouth and Poole could suffer 
because Lhey would be represe- 
sented by just one employers’ 
and one dockers’ delegate in a 


new. Bristol-based. South West- 
board. It would include ports in 
the South, the South West and 
South Wales. 

There is also concern about, 
plans to make port employers. - 
rather than the board, res- 
ponsible for dockers' medical- 
and welfare services. 

The unofficial committee 
want the transport union to call 
a special meeting of its docks 
committee and reject the pro- 
posals. Mr John Connolly, the 
union's national docks secretary.. 
said they would be discussed at- 
the next regular meeting on 
April 15. 


Irish ferry turns back after blacking at Sealink port 


B & T LINE, owned by the Irish 
Government, was prevented 
from starting its planned daily 
Dublin-Holyhead service yester- 
day as Sealink employees at the 
North Wales port again blacked 
the company's ferry, writes 
Robin Reeves. 

For the second time in three 
days a morning gang of IT men 
at Holyhead refused to handle 


B & Ts ferry. Connacht, and 
were sent home by Sealink as a 
disciplinary measure. 

The action is being supported 
by all ten unions at the port 
which fear the new service will 
undermine the profitability of 
Sea link’s existing Holyhead 
operations. 

But in contrast to last Satur- 
day. when their refusal to co- 


operate in B & n berthing 
trials. led to the cancellation of 
Sealink's own afternoon sailing, 
yesterday the Sealink ferry St 
David, left for Dun. Laoghaire 
on time. 

The 6.000 tonne Connacht 
waited just outside Holyhead 
harbour for more than an hour 
but was told no morning gang 
was available. She eventually. 


decided to return to- Dublin. . 
having failed to land the 39 pas- 
senger and nine cars on the 
inaugural trip. This was out of 
an original booking of 250 pas- 
sengers. 

As a company, Sealink is con- 
tinuing to insist publicly that 
the men’s action is wrong, that 
it must maintain an open ports 
policy. 


SAB 


Johannesburg 
5 March 19S2 


|THE SOUTH AFRICAN BREWERIES LIMITED (“SAB") '' 

EDGARS CONSOLIDATED INVESTMENTS LIMITED ("EDCON ") 

( Both Companies Incorporated in the Republic of South Africa) 


ACQUISITION BY SAB OF EDCON 


Introdnction 

Union Acceptances Limited announces that SAB has Required 10 934199 Edcon ordinary shares, representing 
approximately of the issued ordinary share capital of Edcon. On 2 and 3 February, 19S2. approximately 
3S% of Edcon's ordinary share capital was arquired by SAB from various Edcon shareholders which resulted in 
SAB becoming the larsesl shareholder in Edcon. Further Edcon ordinary shares were then acquired by SAB 
from Liherty Life Association nf Africa Limited and its subsidiary. First Union General Investment Trust Limited, 
which increased SAP’s shareholding to approximately 60% of Edcon’s ordinary share capital and placed control 
of Edcon in the hands of SAB. Thereafter, further Edcon ordinary shares were acquired from Mr. Sydney Press 
and his family, resulting in SAB obtaining its present level of shareholding of SS% of Edcon. 

Offer to Edcon minority shareholders . 

SAB will extend an offer to the remaining shareholders to acquire their ordinary shares in Edcon. ' Tt is intended 
■that the offer will take the form of a scheme of arrangement in terms of section 311 of the Companies Act, 1973, 
as amended, to be proposed by SAB between Edcon. and its relevant shareholders. 

The consideration in terms of the scheme of arrangement will be R15 per Edcon ordinary share, to he settled 
as follows: ' * 

For every IDO Econ ordinary shares — 250 SAB ordinary shares (to be issued at R4.90 per share ) ■ 

plus R27R in cash 

Edcon ordinary shareholders whose holdings are not multiples of mo ordinary shares will receive the equivalent 
pro-rata share of the consideration in-respect of such holdings, except that fractions of SAB ordinary shares will 
not he allotted and such shareholders will receive an appropriate cash amount for fractions based on R4.90 per 
SAB ordinary- share. 

The Edcon shares wiU be acquired by SAB cum the Edrnri interim dividend of 22 cents per share announced by 
the Edcon- board on II February IRS 2. In this regard Edcon shareholders are referred to the announcement by 
Edcon dated 5 March 19S2 and published simultaneously herewith, in terms of which the Edcnn interim dividend 
has been postponed, in order for Edcon shareholders to be able to consider the offer by SAB. 

The SAB ordinary shares to be issued to the Edcon minority shareholders will rank, as from tiieir date of issue, 
pari passu with the existing issued ordinary shares in SAB. and will rank for the final dividend to be declared by 
SAB in resppet of iLs financial year ending 31 March 1982. 

The above terms of the offer to minority shareholders are the same terms on which SAB acquired control of 
Edcon. 

Underpinning of SAB ordinary shares 

Arrangements have been made for the SAB ordinary shares to which Edcon minoritv shareholders will become 
entitled, to be underpinned for cash at R4.90 per SAB ordinary share. Accordingly. Edcon ordinary shareholders 
will be able to renounce all or part of their entitlements to SAB ordinary shares in exchange for R4.90 per share 
in cash. Edcon ordinary shareholders can thus elect to receive a cash consideration of R1 500 for every 100 
Edcon ordinary shares held, in lieu of 250 SAB ordinary shares and R275 in cash. 

Opinion or Edcon directors - 

The directors of Edcon. other than those who are also directors of SAB. have considered the terms of the offer to 
the remaining shareholders of Edcon. These directors consider the terms of the offer to be fair and reasonable, 
and recommend that Edcon minority shareholders accept the offer by voting in favour of the proposed scheme of 
arrangement. 

Rationale for the acquisition 

Edcon is the controlling company of Edgars Stores Limited (*' Edgars ’’1. owning 50% of the issued ordinary 
share capital of Edgars. Edgars operates through five .separate chains. Edgars. Sales House. Jet. Ackermans a'nd 
Zimbabwe, and is the largest retailer of clothing, footwear and household textiles in South Africa. At the end of 
its 1981 financial year. Edgars operated 413 stores throughout Southern Africa with a total trading space of 
350 000 square metres. Since that date the Ackermans chain, consisting of 35 stores, has been acquired and this 
acquisition will increase the trading space of the Edgars group. 

The companies within the SAB group operate in various consumer goods and services oriented sectors and the 
acquisition of control of Edgars is exactly in line with SAB’s investment policies and results in the further 
expansion of its operations in these sectors. This acquisition provides SAB with a significant investment in the 
retail clothing industry and complements the SAB group’s existing activities in the retail sector. 

SAB is confident that the inclusion of Edgars -within the SAB group will he heneficial to Edgars and its 
shareholders. Edgars’ close association with the SAB group, the major consumer oriented group in South Africa, 
wiil enable Edgars to benefit from SAB's financial strength and management expertise. 

Management, staff and board appointments 

-SAB has full confidence in the management and staff of Edgars and it is not expected that the acquisition will 
■ result in any management and staff changes., Messrs. R. J. Goss and W. S. MacFarlane. directors of SAB, have 
been appointed to the board of Edcon and Mr. A. D. P. Bellamy, managing director of Edgars, has been appointed 
to the board of SAB. 

Effect on SAB 

If SAB adopts. the conservative policy of writing off in full at the time of acquisition of Edcon the excess of- the 
purchase consideration over the net book value of the assets acquired, then the equity book value per SAB 
ordinary share will show a small decline, estimated at approximately S%. as at 31 March 1982. 

Tt is not expected that the acquisition will have any immediate material effect on the earnings per SAB share. 
However, it is expected that Edgars will have a beneficial impact on SAB's earnings per share in the future. 

Documentation 

Documents for the implementation of the offer to Edcon minority shareholders are being prepared and will be 
despatched to Edcon shareholders as soon as possible. A circular to SAB shareholders containing details of the 
acquisition will be despatched at the same time. 


I , UNION ACCEPTANCES LIMITED 

|| (Registered Merchant Bank 

: Incorporated in the Republic of South Africa) 

• A member of the Nedbank Group 


Industrial 
action call 
by teachers 
supported 

By John Uoyd, Labour Editor 

LOCAL AUTHORITY unions 
yesterday gave full support to 
the industrial action planned 
by teaching unions from. 
Thursday.' . 

; ‘ .The teachers are protest- 
ing against the refusal by local 
authorities, to go to arbitra- 
tion on tbeir 3.4 per cent pay 
offer. The unions are claim- 
ing -12 per. cent 
■ A meeting of the- TUCs 
.total government co-ordinat- 
ing committee agreed that 
the non-teaching unions would 
take no action which would 
impede the effectiveness of - 
•the action. 

The teachers have said they 
will cease covering meal 
breaks, and will refuse to 
attend meetings with parents 
outside normal hours. 

The co-ordinating commit- 
tee’s statement means that 
manual workers in. schools 
will bp instructed not to assist 
.'in kcplng the schools open 
during the lunch breaks, or 
in any way mitigate the effects 
of j the action.. ' These are 
expected to include the 
closure of schools at midday. . 
. Mr . Alan Fisher, general 
secretary 1 of the National -. 
Union of Public Employees 
and chairman ' - of the 
co-ordinating- committee, said 
after the meeting that the 
teachers’ action was “vitally - 
important” for those local 
authority groups — who 
(□elude the administrative 
and clerical workers— who 
have not yet settled. The local 
authority mannai workers 
settled earlier tills year for 
about 7 per cent 
Mr Fisher said: “Local 
authority and other public - 
service employers must 
recognise that if strikes are 
to be avoided in our essential 
services, they must accept the 
need for arbitration when 
negotiations have broken - 
down.” 

The National Union of 
Teachers, the largest teaching 
union, said yesterday it had 
received informal approaches 
-from a number of education 
authorities, asking to he 
exempted from the action' on 
the understanding that they 
would support the demand . 
for the issue to go to arbitra- 
tion. 

. It .Is understood that the . 
authorities, include the Inner. 
London- Education Authority.. 
Leeds, Nottingham .. and 
Oxfordshire. • ' 



Br 

halted over new rosters 


BY BRIAN GROOM, LABOUR 

PRODUCTION was halted, * 
British . Steel Corporation’s 
Ravenscraig complex id- -.-Scot- 
land yesterday, when manage- 
ment carried out -its threat to 
implement new working, prac- 
tices without the approval of. 
the biggest union. - 
Some 3,000 -members of the 
Iron and. Steel Trades Confed- 
eration walked oiit' ; after, 

nine men -at the Gartcas works/ 
II miles from the main. plant, 
refused to operate the: changes 
and were- sent home. •; -■ 

The stoppage poses a new 
threat • to the loss-ma k ing 
works. BSC said. . . early 

acceptance of the productivity 
scheme -was essential to the 
survival . of Ravenscraig and 
Gartcosh in their present con- 
figuration. " especially given 
that other major works in the 
strip products group have' 
already signed similar agree- 
ments. -and are .thus . 'in. a 
position to further- improve 
their cost performance, which 
is already significantly-. Settee 
than at Ravenscraig azid Gart- 
cosh." • 


! Ravenscraig— one of . BSC s 

five ker integrs ted plahts-rhas 
• a wide catchment area for its 
steeL As well as making its: 
own 'products, it supplies steel 
: to the two Scottish plate -mills, 
Clydebridge and DalzelL and 
the smaller Glenganwck works. 

! Yesterday’s stoppage also, 
halted work; at. the Hunterston. 
ore terminal:' ' - - ' r ' 

The ISTC accused the cor-, 
po rati on . ' irf breaking the 
..national, .-'deal reached - on 
- February -when the ISTC 

withdrew Its threatened national 
overtime band and agreed that 
local - productivity negotiations 
could take the place- of ; a 
national wage award. • 

That -deal included a .provi-. 
sion for a “flying squad” of 
. national ; union . officials and 
, managemen t to intervene, if 
there waVa failure to agree at 
, local leveL BSC said if offered 
this- on -February 26, but the 
, union -says the -corporation has 
broken off. negotiations 
.Mr. Clive Lewis’. . ISTC 
divisional officer, said the mad; 
age merit's action was ‘Tanatrc." 


He would seektoluvfi th® strike • 
: declared official. 

“The document they:, »r»t 
presented, ran to 47 peges. We - 
have had two meetings, on it 
A lot of things in if- mean very 
fundamental change, and us 
not something you can agree in 
five minutes, ” he said. - 

Mr Lewis said contentious., 
clauses included one 1 which 
would cancel .all manning 
agreements, and leave manage-*, 
mens free to determine man- 
ning-levels. This could mem • 
steelmen working on jobs wnb- 
out sufficient manpower., - 

The productivity . scheme 
involves 600 redundancies from 
the workforce nf 5,760. BSC says 
that increases to the lum p su m' 
bonus scheme could. -provid* 

double-figure rises. . 

BSC said last night that the 
steelmen had walked out with- 
out leaving safely ewer. 

Management had to perform 
that task. The proposal s had ». 
been put forward last Novem- \ 
her, and that there had 'been 
■plenty of time 10 re* 011 ®n 

agreement. - - - -- 


Key civil servants’ union rejects 
two-year new technology deal 


BY PHILIP BASSETT, LABOUR '.CORRESPCNDWT 


| EXECUTIVE GRADE civil 
servants have rejected in a 
close vote the Government’s 
offer of a two-year interim 
agreement. including - - a 
guarantee of no compulsory re- 
dundancies. on introdiictidn of 
new technology in the Civil 
Service. 

The executive committee of 
the Society of Civil and Public 
Servants, representing about 
100.000 middle-ranking staff, 
rejected the interim offer by 
12 votes to II.' ,••••••• 

Though many- on the execu- 
tive thought that the union’s 
failure to mount effective re- 
sistance to new technology' 
meant that fit had to accept the 
agreement, ; the .. eventual 
majority, were concerned about 
agreeing to- a deal . so- close -to' 
the union's annual conference 
in the spring. - - r.-*...' , 

SC PS conference policy for 
the past two years' -has been . to 
rejecr-any deal .which did not 
guarantee absenceof job losses. 
The : proposed - -.agreement 
accepts « that • an unspecified 
number of. jobs 'Will be lost. as . 


a result of new technology. 

The union’s rejection of the 
offer caste a doubt on its over- 
all acceptance by the Council 
of Civil Service Unions. The 
Finance and- General. Purposes. 
Committee of the lower-grade’ 

. Civil Service Union meets this 
week on the offer, and if that 
rejects it too there will be 17 
votes out of the council's 63 
members against it. 

'. This wil increase the pressure 
on delegates at the special con- 
ference to* consider the. offer', 
-of the Inland Revenue Staff.. 
Federation. , If the IBSFF went 
against .its executive’s some- 
what reluctant recommendation 
to accept, its eight council votes 
-would, be enough to form a 
blocking one-third minority. 

■ If that were the case, .then it 
w. RSely : that the Civil and 
r Public . Services -• Association 
might go it alone- inj accepting 
the deal -ffoir its members.: The 
CPS A; executive meets; on- the : 
offer tdmorrpw^ -. 

The; IRSF, Taring the-, largest 
: Job losses rr- about 6,500;'— from - 


computerisation of Pay-As-You- 
Earn, tells its members starkly 
in a special bulletin that if the 
special conference rejects .the 
offer the union must prepare 
Nearly strike action.” 

Mr Tony Christopher, IRSF 
general secretary, says: . "The 
prospects -of mounting a service 
wide campaign this year have 
already been fully explored 
with the other unions, and- there 
seems little chance of organis- 
ing an effective Joint attack.” • 

The Institution of Professional 
Givil Servants and the First 
Division - Association . have 1 ' 
accepted the offer. The , full 
CCSU meets on it on March 18- 
• The Government and "Chll 
Service unions submitted terms 
of reference yesterday, far 
arbitration on this year’s- pay 
deal 

The two sides formally failed 
to agree on the terms. The union 
ride's terms are essentially 13 
per cent increases, with as 
underpinning £12.50 minimum.- 
and the Government s a complex 
range of pay offers from 0 to 
,5i per cent 










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Financial Times Tuesday March 9 ly&a 



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• ■ ■ / . r.:. •*.. T Ty . ■ 1 VS^.*, "i ' 1 " * ‘ ' r ’" •■ 


UK NEWS - PARLIAMENT and POLITICS 


Labour attacks 



Lawson 

dismisses 

Amersham 



hears first shots in anger | 


BY MARK MEREDITH, SCOTTISH CORRESPONDENT 


Oil and Gas Bi 



By Ivor Owen 


BY jOHN HUNT. PARLIAMENTARY CORRESPONDENT 


THE BILL to privatise the 
production of North Sea oil 
was condemned in the Com- 
mons last nisht by 31 r John 
Sllkln. Labour's shadow Leader 
of the House, as “evil, bad 
and wicked." 

He compared it to the sale of 
Amersham International — ■“ rhe 
selling-off of publicly-owned 
assets at bargain-basement 
prices regardless of the public 
interest.” 

Mr Silkin was speaking in a 
debate on the Government's 
guillotine motion, introduced 
to speed the passage of the Oil 
and Gas t Enterprise! Bill, 
which is still in its Committee 
Stage. 

Mr Francis Pym. Leader, of 
the House, confirmed that the 
articles of association for 
Britoil. rhe privatised company 
which is to take over the British 
National Oil Corporation's ex- 
ploration and production 
activities, will be published 
later this week. 

Labour MPs have been angered 
by the Government's failure io 
produce the articles at an 
earlier stage. They want to 
make sure they contain proper 
safeguards to prevent foreign 
interests gaining control of 
Brit oil. 

But Mr Pym’s promise yester- 
day failed to placate the 
Opposition. There were com- 
plaints that the documents will 
be produced so late that there 
will be no opportunity to dis- 
cuss them in committee. 

Mr Silkin said it was extra- 
ordinary that the Government 
was trying fo speed up the 
BNOC " rip-off ” at a time when 
oil prices were failing steeply. 


He speculated whether prices 
would fall by 50 or 60 per cent 
by the time Britoil came on 
the market. 

The Government was putting 
ideology before everything — 
and in fhis case their ideology 
was privatisation. 

Mr Pym. however, said pro- 
gress had been so slow that 
unless the Government took 
action the Bill would be in 
jeopardy. 

He pointed out that there 
had been 17 sittings of the 
committee with 70 hours of 
debate. Yet only 11 clauses had 
been dealt with and 25 clauses 
and four schedules had still to 
be considered. 

At. the present rate of pro- 
gress the Bill would still he 
in committee by the time of the 
summer recess. 

Mr Pym said the Govern- 
mem motion meant the Bill 
would be back on the floor of 
the House by March 23. There 
would be ten further committee 
sittings giving a total of 110 
hours Df debate in ifommittee. 

Mr Pym argued that it had 
been impossible to produce the 
articles of association earlier 
because of their complexity. 

At this. iVIg Gordon Wilson 
(SNP Dundee East) protested 
that MPs would not now have 
an opportunity to discuss the 
articles except for a short 
period at the report stage. 

Mr Pym. however, reminded 
him that during the Second 
Reading debate the Govern- 
ment had made it clear that 
there would be safeguards over 
control of the new company. 

The guillotine motion was 
approved by a majority of 55 
(284-226). 


MR NIGEL LAWSON, the 
Energy Secretary, yesterday 
ridiculed assertions that the 
taxpayers lost in excess of £20m 
through the flotation of shares 
in Amersham International,, 
the state-owned radioactive 
materials producer. 


“ This was a highly -success- 
ful act of denationalisation." he 
insisted. 


Mr Lawson argued that the 
idea that the price at which the 
shares changed hands after the 
original flotation provided an 
accurate indication of what 
could have been obtained for 
the company as a whole was not 
a view shared by *' anyone who 
knows anything at all about the 
Stock Exchange.” 


THE Hillhead by-election 
campaign started officially 
yesterday with Mr Roy Jenkins, 
the ' Social Democratic-Liberal 
Alliance candidate, confident of 
friendly support. 

The Alliance, Labour and the 
Scottish Nationalists held Press 
conferences to open their cam- 
paigns. The Conservatives 
waited for an adoption meeting 
later last night 

Voting among the 41,000 
electorate is on March 25. The 
bv-election was called on the 
death of Mr Tom Galbraith, 
Conservative. 

Mr Jenkins was anxious to 
dispel persistent charges of 

“ carpetbagging.” 

He said he had received a 
friendly welcome. Unfriendly 
responses could be counted on 
the fingers of two hands — less 


than the 12 per cent estimate of 
a recent poll, he suggested. 

This is borne out m a poll 
published today in the Glasgow 
Herald, which numbers don't 
knows at 30 per cent The poll 
shows Labour with 23 per cent 
the Conservatives with 22 per 
cent, the Alliance 17 per cent 
and the Scottish Nationalists S 
per cent 


Mr Cook attacked he 


caEed the obscene situation In we should be .P«t&ng 
wbidi 100 school leavers were- into providing jobs st « 
chasing every job vacancy. level of social semets, 
t - hour wanted to create jobs - Mr George Leslie, the Scottish 
exchange rate National 

fcrwmdine stimulus it was vital to put Huibead ana 


exemp 
for arts 


By Hfcior Goodman, 
Political Corrwpondont 


Leaflets 


ti>e political^ 

told a questioner that he was 
angry at the weekend speech 
by Mr Pat Wall, who is seeking 
endorsement as Labour's candi- 
date in Bradford North. 


Reality 


Mr Jenkins said people he 
met were often wrestling over 
their party allegiances. 

He headed off to hand out 
leaflets and shake hands with 
shoppers and parents outside 
local primary and nursery 
schools. 

Mr Robin Cook, Labour MP 
for Edinburgh Central, speak- 


He said a recent poll had 
Mr Wall did not agree wafti shown that 26 per cent of 
these views and he did not think Labour votere were ready 
the national executive of toe back the SNP 'as their second 
Labour Party would back bon. . . choice and it was up ttrtne 
Mr Jimmy Allison, Labour's Party' to bring this 1 
election agent, said there was Mr WlHiam Whltela w^ th e 
no' prospect of a party, split in Rome Secretary, in a. speech 
Scotland. ' ‘ prepared for the adophon-ineet- 

Mr Wiseman accused the Gov- tog ‘of ! Conservative candidate 


than at the same stage of his . ing for Labour's Mr David 


Asked if he was satisfied with 
the advice given by Rothschilds, 
the merchant bankers, on the 
fixing of the original share 
pricel he said: “I am satisfied 
that Messrs. Rothschilds gave 
the Government their best 
advice” 


last campaign, in Warrington. 

The number of “ don't 
knows *’ in Hillhead was higher 


Mr Tam Dalyell (Lab West 
Lothian) challenged the 
minister to explain why the. 
Investors’ Chronicle, in its issue 
of February 26, had been able 
to assure its readers solemnly 
to expect a premium of 30p over 
the existing share price of 142p. 

Why was it that neither Mr 
Lawson nor Rothschilds had 
been as wise? he asked. 


Power stations 
kept open ior 
district heating’ 


Immigration ‘obsession’ 
with errors in papers 


SEARCHES for discrepencies in 
documentation provided by 
immigrants from the Indian sub- 
continent wishing to join rela- 
tives in the UK has become 
become “almost an obsession.” 
it was claimed at a Commons 
select committee yesterday. 

“Documents, both statutory 
and private which priraa facie 
speak for themselves are 
ignored and generalised as 
easily procurable and forged.” 
the United Kingdom Immigrants 
Advisory Service (UKIAS) told 
the Race Relations and Immi- 


gration sub-committe. 

“ Discrepancies are deemed to 
outweigh the documentary 
evidence, thus tipping the 
balance of probability against 
the applicants, thus delaying 
derisions for months or years, 
causing great hardship." 
UKIAS said in written evidence. 

UKIAS investigated some 45 
cases where entry clearance had 
been refused because the burden 
of proof of relationships had 
not been satisfied. In some 
UKIAS said it found the appel- 
lants were related as claimed. 


Mr Lawson replied that at the 
time the share issue was 
announced the Investors’ 
Chronicle had said the issue 
was “ ambitiously priced.” 

He agreed with Mr Peter 
Viggers (Con. Gosport) that 
neither the use of the tender 
system nor a higher initial price 
for the shares would necessarily 
have ensured a higher net 
return for the Government 
“ The taxpayer got a very fair 
price,” maintained Mr Lawson. 

Mr Merlyn Rees. Labour's 
shadow Energy Minister, asked: 
“Do you consider that your 
decision on the method of sale 
— and it was yqur derision — 
was the right one for the 
community.? ” . 

Mr Lawson answered: “I 
accepted the advice that was 
given by my advisers. I take 
full responsibility for that” 
Reaffirming his view that the 
sale had led to a '* very success- 
ful result.” he dismissed the 
protests over the privatisation 
with the comment that he had 
never before heard or read so 
much nonsense. 


By Maurice Samuel son 

SOME old power stations, dne 
for closure, are being kept 
open for possible use of their 
waste heat for district heating 
schemes, Mr Fred Bonner, 
deputy chairman of the Cen- 
tral! Electricity Generating 
Board, said yesterday. 

Together with senior 
officials of the Electricity 
Council he was giving evi- 
dence to the Commons select 
committee on energy which is 
investigating the' prospects for 
district heating schemes fed 
by hot water from power 
stations. 

Proponents of such schemes 
see them as a long-term solu- 
tion to the problem of high 
energy costs, pointing out that 
more than .half a power 
station’s fuel input is waste- 
fully discharged into the 
environment. 

In a memorandum, the 
CEGB told the committee that 
if the re wa s a market for heat 
from CHP It was anxious to 
supply it 

However, the problem was 
whether there would bg suffi- 
cient customers. 


Ships retained 

DEFENCE SECRETARY Mr 
John Nott confirmed in a 
Commons written reply that 
the assault ships HMS Fear- 
less and Intrepid would be 
retained in Royal Navy ser- 
vice at an extra cost of £3m- 


5L.V. 


n 





•» . 


• - / /: 


CONSTRUCTION 

FINANCE 


.v; «■ ?y 



. • • 

American Express Bank 


;c American Express iniornatior.K Banking Corpora!. 


Wiseman, accused Mr Jenkins 
of misrepresenting Labour’s 
estimates of public borrowing. 


eminent of pursuing “the 
econo mics of the madhouse aod 
the social policies of the poor- 
house.” :' 

“We need a radical alterna- 
tive Budget designed.to reverse- 
the trend. Instead of ' 


Mr Gerald Malone, said It was 
hard to take the SDP seriously. 

The movement “remains as 
bitterly divided bn a anjiriortty 
of its' policies as it is com- 
pletely undecided on a 
taking/ majority,” hie : said. ... . 

- . . . 


Energy aid hint 



BY IVOR OWEN 


ANOTHER HINT that today’s 
Budget- will contain welcome 
news for industries which are 
major electricity-consumers was 
given by Mr Nigel Lawson, the 
Energy Secretary, in the Com- 
mons yesterday. 

He told MPs: “ I hope we will 
be able, very shortly indeed, to 
be able -to do something — I do 


Mr Enoch Powell ,. — — - . ... 

Down South) asked if the* that the corporation could 
Government looked ahead to weather the storin. . . 

the time when North Sea oil Ruling: out , such a step, ■ Mr 
would be dear oil, and con- Lawson saidhe was confidant 
sldered “how we should best, that BNOC would "remain cap- 
protect ourselves against the .able of dealing with. develop- 
danger of buying our own dear meats in the oil markets as they, 
oil. ” • ’ -V occurred. : - 

replied- “If I r In? further exchanges r- Mr 


(OUP, 
if 


THE ARTS LOBBY yesterday 
received the- influential backing 
of the select committee cm 

education and the arts for its 
argument that the arts should 
be exempted from VAT. - 
• The : committee said in a 
report that all theatres, concerto 
and other cultural events should 
be exempted by 1985. As an 
interim step, the arts should 
bear a special VAT rate fire 
points below the standard, rate 
in force. , \ 

- VAT is levied now at the 
standard rate of 15 per : cent, 
and is a valuable source of 
revenue to the Chancellor. ■ But 
after taking evidence., .from 
- numerous arts organisations, the 
committee concluded that it was 
“not in the national interest 
-flat the arts should be stripped 
of financial resources .by the . 
action of VAT -levied , at the 
rate of 15 per cent. . 

The arts lobby has long 
argued that the imposition of 
VAT was damaging to the arts, 
but it has not so far succeeded 
Chancellor. 


turn’ proposal for 12 months so * in convincing the 

■ * The committee said that ontfafi 
basis of the evidence received 
it appeared that VAT -bad -the 
effect of raising ticket prices 
“beyond the threshold of price 


not say everything that industry tow " toese mat toat 

would like - of significance in tere are herileft totheHurket”; 

Mr Ian Lloyd ' (Con, Havant 
and Waterloo) said that the ■■ 


that area. 

Dealing with domestic elec- 
tricity charges, Mr Lawson said 
he expected that area boards 
would shortly announce price in- 
creases of under 10 per cent for 
the coming financial year. 

En a general review of energy 
costs he confirmed that coal 
prices would stay the same until 
November. 

He hoped it would be pos- 
sible to look forward to some 
stability in gas prices, and sug- 
gested that the f allin g price of 
crude oil and weak demand 
meant that there was scope for 
buyers to seek lower oil pro- 
ducts prices “through aggres- 
sive purchasing. ” 


He stressed that demand for 
gas- by industrial users was 
more than what was available: 

Domestic gas consumers, said 
Mr: - Lawson, ^vere largely, 
„ unaware that despite the cdtt- 
Mr Lawson said he hoped, the siderable incr eases already 


market had done a splendid job 
in destroying the cohesion of 
Opec, which was “ such a disas- 
ter” for the industrial nations 
of the West in the past decade. 


House would approve of the 
positive way in which BNOC 
had responded to market forces 
by reducing the price by $4 a 
barrel. '•••.• 

Mr Ted Rowlands, a Labour 
Energy spokesman, claimed that 
the fall in. Oil prices meant that 
BNOC faced the greatest crisis 
since its creation. 

He called on the Government 
to postpone the denationalisa- 


mmenneed; thfey. would still pay 
a great deal .less than their 
counterparts m Jrtnce and 
Germany, . . ' : 

Gas was still cheaper by far 
than either electricity or oiL 
.. Mrs J ohn .Moore, 1 .Under- 
secretary for. -Energy, indicated 
an^eiSriy-aimouziciement by the 
..Government to. speed take-up of 
grants for conversion of oil 
boilers to co^L v .r ■. ■ 


resistance,.” and of depriving’ 
sections . of the public - Irian 
regular access to the arts. 

Britain, as a member of the 
:EEC, is party to a directive 
aimed at. harmonising VAT 
within the Community which 
decrees that all EEC countries 
will have to' exempt the arts 
from VAT eventually, because 
they are '“an activity in. toe 
.public interest.” 

Third report from the education 
science and arts committee, ses- 
sion 1981-82; Public and Private 
Funding of hte Arts: TLnterim 
Report on Value Added ax and' 
the Arts. 

# -Authors whose books are in 
big demand at public libraries 
may soon earn up to an extra 
£5.000 a year. Arts Minister Mr 
Paul Channon announced . in a 
written Commons reply yester- 
day. giving details of the 
Government's draft Public 
Lending Right scheme. 


Anglo-Irish Council MPs 




BY MARGARET VAN HATTB4, POLITICAL STAFF 


THE FIRST meeting of UK and 
Irish MPs under the auspices 
of the five-month-old Anglor 
Irish Council may be held in 
the summer. 

The possibility of setting up 
the council's parliamentary tier 
as early as August has surfaced 
in discussions between « Mr 
James Prior, the Northern 
Ireland Secretary, and the 
Social Democratic and Labour 
Party, Ulster’s major Catholic 
party. 

This could be the issue which 
makes or breaks Mr Prior’s 
attempts to set up an elected 
assembly in the province this 
autumn. 


Ithas been 
for some time. 

Prime Minister. 

Thatcher, that the assembly 
envisaged by Mr Prior contains 
si gnificantl y less, tor the - SDLP 
than was ran offer under f&e 
1973 Sumungd&te power-sharing 

agreement. ... 

This time it will have no 



eet soon 


’Unionists. Indications art that 
eVen by. the . the majority •df-’Westeunster 
Mrs Margaret back benchers are so iiared by 
the; whole idea;that Government 
attempts to foist' -it' oh them 
could result- 
rebuff." 


the other way— if, for example, 
-the ERA had been more success- 
ful in its attempt to assassinate 
.toe Lord Chief Justice, Lord 
Lowry — and that Mr Paisley is 
far from being eclipsed. 

In trying to turn last week’s 




^ to the devolution 


SDLP may boycott* 
Assembly election. 


guaranteed position in . govern- rpossibly 4brqhf0i*on oarly -day negotiations 
meat. Indeed, if the .ejection;, motion, ftifrafei^that would be 
follows previous voting jjatterhs, , likely to, raisevtoe riisp 2 jrions of 
-it could ' become v largely- ^ the ?Umonist^T|i^fe -^ave seen 
irrelevant without the support; several ;:Of/ their orstwhile 
of the Alliance Party, which, colleagues destroyed try what 
while moderate; is still a . toeir soppprt^s. regarded as 
Unionist party. an . over-rebdto6ss. to talk to 

The Northern ■ Ireland' . Dublin. ; -. : - , . : ;>r -• 

ministers, -convinced that the 


Catholic nunority is mote into pajgfeyJg j^jy. 


The SDLP saysr it will not 
contest the election, unless it 
gives it the opportunity for 
effective participation irf the 
Anglo-Irish talks, .This requires 
the creation of a parliamentary 


ested in protecting its . right- to ' ._ 

be .Irish toan to the weigh ting 
of. assemblies and .committees,- fTOHl eclipsed 


committees,- -- 

have tried to offset the per-:' Th©i# Offiriai^'UtHPomsts,' the 
cexved deficiencies of • toe- -najssv fib irfMCh j&- Prior is loo*- 

wntext in whu* it would be the SDLP as c basis for derohi- . 

SE L^ P ‘ . , ' ‘ - , tkto-Tb,-^n- ncr'mqod «to take 

The simple eight or nine^risks.. 


body which it could join as- one clause Bill amending the 197# D^tonaSsed^yfiie steady rise 
of the parties represented m Northern IrelandTomstitutionVi^ Setfsm to 


the assembly, and which would 
have some influence over Dub- 
lin and London. 

The two hard-line Unionist 
parties— the Offical Unionists 
and the Rev Ian Paisley’s 
Democratic Unionists — may 
withdraw, however, if they see 
the parliamentary tier as likely 
to develop into something' more 
than the travel clubs which exist 
at Westminster under the none 
of inter-parli amentary groups. 

Whether the SDLP 'will con-" 
test the elections will depend 
heavily on the man whom the 
Dail (tile Irish parliament) con- 
firms later today as its Prime 
Minister. While some British 
ministers may sympathise with 
the SDLP, the Government is 
unlikely to do anything about 
the parliamentary tier except in 
response to heavy pressure from 
Dublin. 


Ireland . . „ _ _ ^ 

Act, expected to be introduced k:'toiy be heartened by last 
in parliament soou. is to -be •, week’s ! by-e3ectSon triumph in 

*Squth -^Belfast. ' where Mr 


Cert ain _ behind - the - scenes 
events tent at Government 
efforts to prop up the OUP — 
the concentration on security 
efforts, the disregard of SIT 
Paisley and his attempts to 
rally - ; a “ third force,” ~his 
exclusion from the early devo- 
lution negotiations — possibly 
even the investigations into the 
Ktocora. boys’ home affair, 
which appears to be damaging 
Mr Paisley's party. 

_ Many of the 300 spoiled votes 
to last week’s by-election were 
reported to have had scrawled 
on - them anti-DUP slogans 
referring to Kin Cora. . 

The Government would be 
reluctant to do anything which 7 
fS? 1 ^ Paisley a stick 
wto.vtoch to beat, the OUP. 
it is, -therefore, unlikely to 
press them: * 


Paper stressing the to accept any 


province and the need ‘ for 
equal treatment of the 7 tw& 
communities. 

But (there is so far no indica-Tf. .• 
tion of how or whe&er ■ -k; - i .fF h w ‘ ' a - 




would affect .toe day - to- 
ad m i n i s tration of toe province^! 
For toe SDLP,': toe. manner in> 
which toe parliamentary txerds : 
■set op will * show wbetoei^nfiF 
■British Government is actii^ito 
good faith, -or merely trying to : 
silence it with mood -music. " 
The Government; while toler-; 
ably keen to. see toejpaxlto- 
mentary tier set up, is extremi “ 


reluctant to pusli'for 


define its functions. 

This is only partly due to'KsJ 
fear of antagonising thel 



Interested 


minimum period of two yea r s 

«dlect tender documSte^rorTSe'l^ 



>K 




Su- 






■ ‘j. 









Financial Times Tuesday March 9 1982 


tts* 


HRO International and 
Jones Lang Wootton 
are proud to announce the signing of 
a 75-year lease of 17 5 Water Street with 
the National ^festmlnster Bank Group. 

The world's ninth largest bank 
has leased the entire 30-story, 
580,000-square-foot building 
for the strategic growth of the 
National \^stminster Bank Group 

and its subsidiaries. 




















We are gratified to have been selected 
to play a part in the expansion plans of 
both the parent Group and its rapidly 
growing subsidiary, the National 
Bank of North -America. The entty of 
financial institutions of such national 
and international distinction further 
strengthens the position of Lower 
Manhattan as one of the world’s 
financial headquarters, now and for 
the future. 

HRO International 

is the developer of 17 5 Water Street. 

HRO International Ltd. 

30 Broad Street, New York, NY 10004 

Agsdones LangWMta 

▼Ff International Real Estate Cons tants 

acted for the bank 

in arranging and negotiating die lease. 

5 Hanover Square 
New York, NY 10004 

499 Park Avenue 
New York, NY 10022 












>vw‘ ; n; 



£12m glossy paper process 


BY ANDREW FISHER 


■WITH THE aid of a highly 
secret U.S. process and some 
£12ra of capital investment, 
-Tullis Russell of Scotland has 
produced a new kind of coated 
■gloss paper to attack the high 
quality printing market 
' Its product is called Trulux. 
.the result of an advanced pro- 
-cess called Truflo which Tuliis 
.Russell developed on the basis 
of the special coating technique 
:of S. D. Warren, part of the 
: Scott Paper group of the U.S. 

The UK market for gloss 
.papers — used in magazines, 
Ibrochures. promotional material, 
.and book illustrations — is 
;worth about f 120 m a year, repre- 
senting some 200.000 tonnes. 
Tullis Russell will be up against 

variety oE British and foreign 
competitors in this sector. 

Tullis Russell, a private com- 
pam\ with annual sales of 
^■iOm, described Truflo as a 
.breakthrough in coating 

■'technology. 


With the international pulp 
and paper industry still in 
recession, now might seem an 
inappropriate lime to come out 
with a new product But 
Tullis feels it might derive 
some advantage from intro- 
ducing something new when 
the market has no further to 
fall. 

The company made a loss 
of nearly £80.000 in the first 
half to September 30. last year. 

What the Truflo process 
does Is eliminate supercalender- 
ing. the conventional gloss- 
producing method which com- 
presses the piper sheet, losing 
bulk and rigidity. 

A supercalender has alter- 
nate steel and fibre rolls and 
gives a gloss finish through 
the polishing action on the 
coated paper passing through 
the rolls under pressure. 

The Truflo process smooths 
and moulds the coating dif- 
ferently without compressing 


the base sheet. Tullis claims 
that its product has a superior 
smooth gloss, .-a high bulk 
to weight ratio, and exceptional 
rigidity. 

Initially, the company intends 
to break into the British gloss 
paper market, later branching 
out overseas. As well as its 
investment on plant and equip- 
ment, it has also spent some 
£2m on research and develop- 
ment to adapt the Warren pro- 
cess to its own needs. 

It does not intend to stop 
at Trulux. Mr Ronald Wylie, 
chief executive of the Fife- 
based company, said trials 
would take place in Warren's 
laboratories in Maine in April 
and September with the aim of 
developing further products 
with the Truflo process. 

The investment in the Truflo 
plant is Tullis Russell’s biggest 
project. Initial capacity will 
be between 20,000 and 30,000 
tonnes a year — more than a 
tenth of the domestic market — 


but this could be doubled by 
spending only another £250,000 
or so, said Mr Wylie. Previ- 
ously, the company made only 
uncoated papers. 

The whole complex is as big 
as a football pitch, and the 
coater itself is 3.8 metres wide. 
The company says it is one of 
the biggest plants in Europe, 
producing fine quality coated 
grades. 

Each roll of coated paper 
produced by the machine 
weighs 15 tonnes and can be as 
long as 20 miles. The coating 
area is fully automated with 
two separate computers and 
two micro-processors control- 
ling every step of the prepara- 
tion. 

Because of the greater 
rigidity and bulking qualities 
of Trulux. said Tullis Russell, 
printers can often use lighter 
weights than normally speci- 
fied. offering customers large 
savings in postal costs. 


The feed end of the Russell Truflo coating plant ^A^, 


electricians 

TSET. GERMAN company Kati- 
auex-Otelker GmbH KG, of' 
Follerstrasse 82, Cologne 1, 
has developed “ KatoeSblitsT a 
special rod for use by electric 
ns in the " thr e a din g g of 
cable . through conduits. “ 

Tbe flexible’ rod is maite of 
Polystal, a combination of #as5 
fibres and polyester resin sold 
by the Bayer group, and. can 
be used for the insertion of 
cables into long and w ind i ng 

conduits. 


Comdial system ready for switch to the 


age 


ISTwiBiJi 


BY ELAINE WILLIAMS plete digital 

: The company, which was set 

. , . .. ^ , - up in the U.S. four years ago, is 

COMDIAL is a young telecom- phone dial to smooth the transi- already in undleiL production of 
munications company which tion from outdated electrochemi- the Waiter W hich can operate 
says it has designed a new tele- cal telephone exchanges to com- with ^ old electromechanical 

telephone exchanges and auto- 



matically switch over to modem 
digital ones, suctr as System X 
in Britain. 


The Comdial innards contain far less components than 
conventional systems 


Until now it has not been 
feasible to produce a dial small 
enough or cheaply to work with 
both systems. 

The company claims that its 
dial design can eliminate the 
need to produce two different 
types of electronics for the 
handsets and could ease the 
problem of replacing old hand- 
sets when digital techniques 
take over completely. 

In Europe alone there are 
about lS9m telephone handsets, 
of which a substantia! propor 
tion will need to be replaced. In 
Britain, the figure is about 2Sra. 

Every year the market for 
new and replacement telephones 
grows by about 10 per cent. “If 
we could just tap 10 per cent 
of the market, we would die 
laughing." said Mr Ray Vickers, 
chairman of Comdial’s UK sub- 
sidiary. 

The U.S. company was started 


by Mr Don Hoff, an entrepre- 
neur and inventor, who has 
already built up two other tech- 
nology companies. 

Investors have shown interest 
in Comdial, which is a public 
corporation. It is estimated to 
be worth at least W2m on the 


U.S. market 

Comdial has spent more than 
$6m (£3.29m) developing its 
dial which should be in full pro- 
duction in California by the 
middle of this year. 


The new dial contains fewer 
individual components than a 
conventional touch tone or push 
hutton dial. The heart of the 
system is a single silicon chip — 
itself having the equivalent of 
27,000 components. 


The chip converts the num- 
bers pressed on the keypad 
either into the sequence of elec- 
trical pulses used in electro- 
mechanical or the individual 
tones used for digital systems. 

However, the ability of the 
system to do both tone and 
pulses opens up immense possi- 
bilities in the business world. 


For example, the company 
says that it could be used to 
provide small shops and high 
street chains with a cheap way 
of verifying credit cards auto- 


matically down, the telephone 
lines 

This could cut dramatically 
the number of frauds on small 
value purchases below £50 which 
normally do not require check- 
ing and are, therefore, prone 
to abuse. 

The dial is capable of storing 
telephone numbers in a small 
electronic memory. So it would 
be possible to press a single 
number and the handset would 
automatically dial the full code 
in the existing pulse mode -for 
the UK system. 


As soon as the call is made, 
pressing another button would 
convert to the tones system so 
that the user can communicate 
with a computer system operat- 
ing a credit card system. 

All the shop, owner has to do 
then is dial iii the full credit 
card number and wait for the 
computer to reply. 


Comdial says that it already 


has the designs on paper to do 
this, but until recently has 
lacked the last link in the ch a in 
— the means for the computer to 
answer back. 


The company solved this prob- 


lem by taking over MCS, a sub- 
sidiary of Menzies. the news- 
' paper distribution chain, which 


makes and markets a voic&TCS--; 
ponse system. 

In return, Menzies has taken, 
a 26 per cent stake in Com 
UK subsidiary. The Ranic 


Organisation already has 10. per 


s of electrons 


Large organisations, sueh , as 


Renault and Ford use the MCS 
voice response system in the 
UK for applications such as parts 
ordering by telephone directly 
to the computer- and checking 
car dealers’ credit. 

The general lack of touch 
tone telephones in the UK, how- 
ever, and the relatively high 
cost of most systems on the mar- 
ket has prevented the .wide 
applications of credit eheck sys- 
tems here, unlike the U.S 


However. Comdial believes 
that it can provide a system 
which is cheap enough to be 
accepted. 


Mr Vickers is keen to set up 
a UK manufacturing, base, riow 
that Comdial has taken over. 
MCS to fill the missing gap in 
its technology. 7 


UK manufacture of the new 


telephone system could begin 
in the next 18 months or so 
providing several hundred' new 
jobs. 


THU . IBM ^research labor*?- . 
toriesfn RaschHkoir, Switzer--- 
land;/- pave '/ succeeded^ In 
demonstrating ; the - yra ye 
characteristics ; electron^ 
Their experim en^attedainied 
-to, hay$ proved JfOT—the : first 
time that electrons ixan ** ttm- 
nel.T through. -« 
between tito electrodes. A 
Former’ atiSdjittf' 3 ‘ to 
demonstrate thisV'tiieory of 


q uan tum ‘ mechanics, under- 
taken by IBM ih the UJS* and 
by the U.S. National Bureap 
of Standards, did not succeed •’ 
fully owing to problems- 0* 
vibration; since the tunnel 
span has a distance of onlyji _ 
few Angstrom, the slightest 
vibration makes the tssgptir r 
meat impossible. 

JOHN. YACKS 


a--'' 

mm- 



. --.T, 

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Hehtririi^o^E^as^’.^erd Bin nig with their waive electronics 












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9 ; s $ s. 2 




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13 




Financial Times. Tuesday March 9 1982 


Open University, 
-JCuhf only). 935 For Schools, 
-.Colleges. 1230 pm News After 
. ^Ifcon: LOO Pebble MUX at One. 

2.00 you and- We< 2.15 
■ ■For . Schools. Colleger 34» 
Nationwide Budget Special .with 
Darid-Diinbleby, . 

540 News, 

6M Eeffional News Maga- 
_• ‘ ^ . zines. 

■ 6L2S Nationwide. 

055 Cartoon. 

.7.05- Doctor . "Who, starring, 
Peter Davison in “Earth- 
•'shock." 

"730 A Question of Sport 
_ 8,00 Emery presents “Legacy 
of Murder." a ligbt- 
- -hearted, ‘thriller starring 
Dick Emery. 

835 Taxi '(Ameri can comedy). 
. . 9.00 News. - 

"935 The Budget The Chan- 
• • eellor of the Exchequer, 
- The Rt Hon Sir Geoffrey 
Howe. MP, for the 
Government. 

: 935 Play for Today: "TIshoo." 

by Brian Thompson. 

3JLG0 Everyman: Kathy Leaves 
Home. .Can severely 
mentally handicapped 
children have normal 
lives? 

1L50-1L55 News Headlines. 


All ESA Regions as London 
except at the following tftwas? — 

ANGLIA 

12-30 pm Gardening Tims. 1-20 
Anglia News. 6.00 About Anglia. 7.00 
Peterborough Festival of Country Music. 
11 AO The New Avengers. 12A0 am 
Tuesday Topic. . . 

BORDER 

1 JO pm Border News. 5.00 Look- 
8 round Tuesday. 7.00’ Emmerdala Farm. 

11.40 Border News Summery. 

CENTRAL 

12.30 pm The Young Doctors. 120 
Central News. 6.00 Crossroads. 6-25 
Central News.- 7.00 Emmerdsle Farm. 

11.40 Central News. 11.45 1382 ButJin's 
Grand Masters Darts Championship 
Final: Eric Bristow meets John Lowe. 
12.15 am Tuesday Jazz and Blocs: Dizzy. 
Gillespie. 

CHANNEL 

12-30 pm Section ‘82r The Guernsey. 
Section lor Deputies. 1-20 Channel 
Uuichtinw Newf, What's Dn Where and 


;.<*) Stereophonic broadcast 

RADIO 1 

5.00 INI -A*. -Radio' 2. -7.00 Steve 
Wriglit'. 9.00 Simon Batea. 11-30 Dave 
Lea Travis. 2.00 pro Paul .Burnett. 

■5.00 Andy Peebles, 7.00 Talkabout. 
8 no David Jensen. , 10 . 00 - 12.00 John 
Peal (s). 

RADIO 2 

5.00 am Ray Moore- (s) . 7 JO Terry 
Wogan (a). . 10.00 Colin Berry (■)._. 

12.00 Gloria Nunorford (s). ■ 3.00 
Budget Special with Jimmy Young and 
Dominick Harrod (a). 5-30 Sieve Jones 
(s). 8.00 The Golden Aga ot Hollywood . 
fs). -9.00 listen to .-the - Bend . (e). 
930 The -Organist Entertains (s}- 9.55 
Sports Desk. 10.00 One Woman's 
Variety with Janet Brown.- 11.00 Brian 
Matthew with Round- Midnight: 1.00 am 


• • TELEVISION 

Chris Dunkley: Tonight’s Choice 

Yoa vn2i have no trouble Budget coverage: these days 

the problem is escaping it once yon have beard fee worst repealed 
tax tunes. Starting at .3.00 pm Radio ^s pnogramnie will be 
presented by Susannah. Simons, Robert ’WU&ajns.and Gordon 
Clough. ICBC’s vdll be presented by Brian Eayes^ Peter AHen 
and Dougin Moffat On Radio -2 the job » done by Jimmy Yoimg 
and D onMjiick Harrod. If you have access 4i> a teterasaon, David 
Dmftleby and Robin. Day front the BBC 1 programme, and Alastair 
Bunset Peter Sissons and Martyn Lewis present TIN'S. 

Later there are four items that should help os forget the 
Budget Disappearing World, Granada’s excellent anthropology 
series, returns •with, a programme which goes to Africa and 
studies witchcraft among the Azande tribe. Arena on. BBC 2 
carries us away in time rather than distance and screens 
Humphrey Jenmngs’ superb 1941 documentary listen to Britain 
and the Gas Board's 1935 Win Housing Problems, winch should 
pitt the Budget in perspective. BBC Vs Play for Today is Brian 
Thompson’s 1979 West End comedy TishOO, set a few years in 
the future dn a -university laboratory. Best of all TTV starts a 
new three part serial called Just Desserts, -featuring the all-too- 
fauman Board of 'Trade detective; Bognor. 


640-735 am Open University. 
1LOO-1L25 Play SchooL - 
355 pin Play School. 

430 Pine and Dixie; 

435 Jackanory. 

4.40 Animal Magic. 

5.05 John .Craven’s' . News- 
. round. 

5.10 Break in the Sun. 
f5.40 Laurel and Hardy 

6.05 The Waltons. 


Weather. 6.00 Channel Report. 7-00 
Private Benjamin. 10-28 Channel late 
news end Weather. 1032 A Chenee to 
Meet . . . Sandy Gall. 11.40 Danger 
UXB. 12-40 an Comments ires et Pro- 
visions Meteorologiquea. 

GRAMPIAN 

930 am First Thing. 1.20 pm North 
News. 6.00 North Tonight end Area 
Weather Forecast. 7.00 The Two Of Us. 
TI.40 Superstar Profile (James Caan). 
12.10 am North Headlines and Ares 
Weather Forecast. 

GRANADA 

1.20 pm Grenada Reports. 1.30 
Exchange Flags. 2 JO Take the High 
Road. 6.00 This Is Your Right. 6.05 
Crossroads. 6 JO Granada Reports. 7 JO 
Emmerdala Farm. 11.40 Late Night from 
Two. 


12.30 pm Paint Along With" Nancy. 
4.20 HTV News. 6.00 HTV Nsws. 630 
The Comedians. 7.00 Emmsrdale Farm. 

11.40 The Amazing Years of Cinema. 
HIV Cymru/ WaJes— As HTV West 


650 News Summary. 
f655 Huston Directs Bogart in 
“Across the Pacific." 

830 Russell Harty. 

9.-00 Pot Black 82. 

955 One Man and His Dog. 
10.05 Arena. .’ 

10.45 The Budget The Chan- 
cellor of the Exchequer, 
IQ35-UA0 Newmight 

11.45-1240 am Open University. 


ixeapc— 93MJ0 am Am Gymru. 1139- 
1134 About Wales. 12.00-12.10 pm 
Trehetiau. 6.00 Y Dydd. 6.15-6.30 
Report Wales. 10.40 Pwy Fydd Yma? 
11-40-12-40 am Just Desserts (as HTV 
West 10.40 pm). 

Scottish 

12.30 pm Gardening Tima. 1 JO Scot- 
tish News. 1J0 Tha Electric Theatre 
Show— Pater O’Toole. 6.00 Scotland 
Today. 6JQ Job Spot. 630 What'a 
Your Problem? 7.00 Take the High 
Road. 11/40 Late Call. 11.45 1S82 
Budin's Grand Masters Dans Champion, 
ships. 


1237 pra Gus Honaybun'a Magic 
Birthdays. 12 JO Bygones. 1 JO News 
Headlines TSW. 6.00 Today South 
West. 7.00 Private Beniamin. 10J2 
TSW Late News. 11.40 Danger UXB. 
1230 am Posicript. 1235 South West 
Weather end Shipping Forecast. 


130 pm TVS News. 6.00 Coast to 
Coast— live from Southampton and 


RADIO 


Truckers' Hour <*). 2.00-5.00 You and 
the Ntgbt and the Music (a), 

RADIO 3 

&G5 am Waather. 7-00 News. 7.05 
Morning* Concert (a). 8.00 News. 8.05 
Morning Cancan (continued). 9.00 
News. 935 This Week's Composer: 
Shostakovich (a). 10.00 Sacred Garden 
of Delight* (a). 1055 Malcolm Binns: 
piano recital '(a). 1136 Bach Violin 

Sonatas (a). 12.06 pm BBC Walsh 

.Symphony Orchestra, part 1 (s). 1-00 
News. 1-05 Six Continents. .135 BBC 
Welsh Symphony Orchestra, part 2 (a). 
2-05 John Sheppard (s). 2-50 The 

Mendelssohn and Brahma String Quin- 
tan (s). 1SS Trio Cannello (a). 435 


Jazz Today: Charles Fox with records 
(a). 435 News. 5.00 Mainly tor 

Pleasure (a). 7.00 The. Double Man: 

An impression of W. H. Auden. -by Ed 
Thomason (a). 8.00 Muaic of Eight 

Decades concert, pan 1: Messiaen (s). 
835 So My Particular Friend (a). 8.45 
Concert, pan 2: Stockhausen fa). 10.10 
Dinu Ltpatti plays Chopin (*). 1030 

Jazz in Britain: featuring Johnny Dyani, 
Witchdoctor's Son (s). 11.00 News. 

1135-11.16 Historic Sibelius. 

RADIO 4 

. 6.00 ora News Briering. 6.10 Fanning 
Today. 635 Shipping Foracaat. 630 
Today. 8J3 Yesterday in Parliament.' 
837 Weather, travel. 9.00 News. 9.06 
Toesday Call (Spring Cleaning). 1030 


LONDON 


12.00 am Button Moon. 12.10 
pm Let's Pretend. 1230 The 
Sullivans. LOO News, plus FT 
Index. L20 Thames News with 
Robin Houston. L3Q Take the 
High Road. 2.00 After Noon 
Plus: Mavis Nicholson intro- 
duces a specially, extended hour- 
long programme. 3.00 Budget 
*835 Alastair Burnet presents the 
programme and Peter Sissons, 
with the VT80, illustrates 
instantly the effect p£ the .Chan- 
cellor's measures* 

5.45 News. 

6.00 Thames ■ News 
. 520 Help! 

630 Crossroads. 

6.55 Reporting Condon. 

7.30 Max Bygraves— Side By 
Side With . . . Karen Kay. 

8.00 The Glamour Girls. 

8.30 Top of the IWorld- pre- 
sented by, Eamonn . 
'Andrews.- 

9.00 Disappearing World, 

10.00 News. 

1020 Budget *82: The Chan- , 
■ eellor of the Exchequer, 

* Sir Geoffrey Howe, talks 
about h is Budget. 

10.40 Just Desserts: David i 
Horovitch in “Scoff Not.” 
1140 Superstar Profile (Donald 
Sutherland). j 

1210 am Clo$e: “ Sit np and 1 
Listen,” with Ann Todd, 
■indicates programme 

In black and white 


Dover with Kholid Aziz end Vyvyan 
Mack&son. 7.00 The Real World— Sue 
Jay and Michael Rodd investigate the 
offreta of tobacco and alcohol on 
health. 11.40 The Entertainers — Rock 'n* 
roller Shakin* Stevens in concert. 
12.10 am Company. 

TYNE TEES 

9.25 etn The Good Word. 9.30 North 
East News. 1 JO pm North Eaat News 
and Look around. 5.16 Survival. 6.00 
North East News. 6.02 Crossroads. 
6.25 Northern Life. 7.00 Emmerdala 
Farm. 10.40 North Eaat News. 11.40 
The Two Of Us. 12.05 am Reconcilia- 
tion. 

ULSTER 

1 JO pm Lunchtime. 238 Ulster News. 

6.00 Good Evening Ulater. 7.00 Emmer- 
dale Farm. 10 J9 Ulster Weather. 11.40 
News at Bedtime. 

YORKSHIRE 

1230 pm Does The Teem Think? 130 
Calendar News. 6.00 Calender (Emley 
Moor and Belmont editions). 7.00 
Eramardale Farm. 11.40 Barney Millar. 


News. 10.02 From Our Own Corres- 
pondent. 10.30 Daily Service. 10.45 
Morning Story. 11.00 News. 11.05 
Thirty Minute Theatre. 1135 Wildlife. 

12.00 News. 1232 pm You and .Yours. 
1237 Quote . . . Unquote (s). 1235 
Weather, travel, programme news. 1.00 
The World At One. 1.40 The Archers. 
135 Shipping Forecast. 2.00 News. 
2 1 Q2 Women’s Hour. 3.00 News. 3.02 
Ebdon's England. 3.17 PM Budget 
SpeciBl. 5.50 Shipping Forecast. 535 
Waather, programme news. 6.00 News: 
PM Budget Special. 7.00 New*. 7.05 
The Archers. 730 Medicine Now. 730 
Animal Language (s). 830 High Moun- 
tains end Cold Seas (portrait ol H. W. 
Tilman), 9.05 In Touch. 9.30 Kaleido- 
scope. 9.59 Wulhir. 10.00 Tbs World 
Tonight. 1030 Semi-Cirdas. 11.00 A 
Book at Bedtime. 11.15 Tha Financial 
World Tonight. 1130 Today In Parita- 
mam. 12.00 News. 


FT COMMERCIAL LAW REPORTS 
Development land tax on compensation 

COMMISSIONERS OF INLAND REVENUE v METROLANDS (PROPERTY FINANCE) LTD 

House of Lords (Lord Wilberforce, Lord Simon of Glaisdale, Lord Russell of Killowen, Lord Scarman and Lord Bridge of Harwich): 

March 4 19S2. 


A' STATUTORY purchase 
notice served on a local 
authority by a landowner is 
a claim to enforce a statutory 
right to dispose of the land 
In return for compensation; 
and the acquisition of 
development land by the 
authority pursuant to such 
notice is a compulsory acqui- 
sition which renders the 
landowner liable to develop- 
ment tax on disposal, namely, 
at the date when compensa- 
tion is agreed. 

The House of Lords so held 
when dismissing an appeal by 
Metrolands (Property Finance) 
from Mr Justice Noorse’s de- 
cision in the Chancery Division 
that it was subject to develop- 
ment tax after disposing of land 
to the local authority. 

* * + 

Section 45 of the Develop- 
ment' Land Tax Act 1976 pro- 
vides “(l) ... the time at 
which, for the purposes of 
liability to development land 
lax, an interest in land is 1o be 
taken to be disposed of . . . (b) 
... is the time the contract is 
made . . . (4) . . . where an 
interest in land is acquired com- 
pulsorily by an authority pos- 
sessing compulsory powers, the 
time at which the’ disposal ... is 
made is the time at which the 
compensation for the acquisition 
is agreed.” 

Section 180 of the Town 3nd 
Country Planning Act 1971 pro- 
vides: “ (1) Where, on an 
application for planning per- 
mission to develop any land, 
permission is refused . . . then 
if any owner of the land claims 
— (a) that the land has become 
incapable of reasonably bene- 
ficial use . . . and . . .(c) , . . 
cannot be rendered capable . . . 
be may serve ... a notice requir- 
ing the council to purchase his 
interest In the land . . .” 

Section 181 provides: “'flV 
The council oo whom a purchase 
notice is served . . . shall . . . 
serve on the owner ... a notice 
stating either (a) that the coun- 
cil are willing to comply with 
the purchase notice; or (b) that 
another local authority or 
statutory undertaker . . . have 
agreed to comply ... or (c) that 
... the council are not willing 
to comply . . . (2) Where the 
council . . . have served ... a 
notice in accordance with sub- 
section 1 (a) or 1 (b) . . . the 
council shall be deemed to be 
authorised to acquire the 
interest of* the owner 
compulsorily _ . 

* 

LORD BRIDGE said that 
Metrolands was refused planning 
permission for the residential 
development of 431 acres of 
land in Bolton, and served a 
purchase notice on the council. 


pursuant to section ISO (1) of 
the Town and Country Planning 
Act 1971. On December 20 1974 
the council served a compliance 
notice on Metrolands. pursuant 
to section 1S1 (1> (a) of the Act, 
staling that it was willing to 
comply with the purchase 
notice. 

On August 11 1976 Metrolands 
and the council agreed that 
compensation of £64.650 should 
be payable on the acquisition of 
the land with the benefit of a 
certificate of alternative develop- 
ment which had meanwhile been 
granted. 

Metrolands was assessed to 
development land tax of £29,0S5. 
It appealed to the Special 
Commissioners who held that 
the land had not been acquired 
compulsorily and that by service 
of the compliance notice the 
council had concluded a binding 
contract to purchase it. They 
accordingly allowed the appeal. 
The Revenue then appealed 

successfully to the Chancery 
Division where Mr Justice 
Nourse took the oppusite view. 
Metrolands now appealed from 
his decision. 

The Development Land Tax 
Act imposed a now tax, origin- 
ally at the rate of SO per cent 
on the realised development 
value accruing to a landowner 
On the disposal of his interest 
in the land on or after the 
M appointed day," which was 
August 1 3976. 

If. as Metrolands contended, it 
disposed of the land on Decem- 
ber 20 1974 I the date of the 
compliance notice), it was not 
chargeable to development land 
tax. If, as the Revenue con- 
tended, it disposed of the land 
on August 11 1976 iwhen com- 
pensation was agreed), it was 
chargeable. 

it 

It was not disputed that the 
council was “ an authority pos- 
sessing compulsory powers " 
within subsection (4) of section 
45 of the 1976 Act. Since sub- 
section (2) was subject to sub- 
section (4). it followed that the 
first question was whether the 
land was “ acquired com- 
pulsoriiy." 

Metrolands argued that its 
service of the purchase notice 
was an unconditional offer to 
sell the land at a price to be 
.determined in accordance with 
the statutory provisions applic- 
able to the assessment of com- 
pensation on a compulsory 
purchase, and that the local 
authority's service of the com- 
pliance notice was a voluntary 
and unconditional acceptance of 
that offer. It was submitted that 
the offer and acceptance con- 
cluded a binding contract for 
the sale of the land on Decem- 
ber 20 1974. 

An acquisition could be 


described as compulsory, whether 
the compulsion to acquire was 
exercised by the acquiring auth- 
ority against the landowner 
l comm only called “compulsory 
purchase”! or rice versa (some- 
times called a “reverse compul- 
sory purchase ”1. 

A purchase notice under sec- 
tion ISO. while in one sense it 
might be loosely described as an 
unconditional offer to sell the 
land, it was in truth much more 
than that. It was a claim to en- 
force a statutory right to dispose 
of the land and to receive the 
appropriate compensation. 

Providing the landowner could 
make good his claim that lbe 
land satisfied the conditions of 

section lS0(l)(a) and (c) the 
purchase notice must lead 
(subject to sections 1S4 and IS5 
which were not presently rele- 
vant i lo one or other or the 
foHcwing results: (1.) acquisition 
b> the local authority; 12 1 
acquisition by another local 
authority or statutory under- 
takers; (S) the opportunity to 
render the land capable of bene- 
ficial use by the grant of per- 
mission for the development 
originally refused or for some 
other development. 

A local authority receiving a 
purchase notice must lake action 
(“shall . . . serve a notice stating 
either . . ."I under (a) (b) or 
(c) of subsection (1) of section 
3S0. The grounds of opposition 
could only be that the land was 


RACING 

BY DOMINIC WIGAN 


ONLY FOLKESTONE remains 
this afternoon, now the Warwick 
meeting has been abandoned 
because of waterlogging. 

Both Doonally and Noon Gun 
are likely to offer reasonable 
value. Those prepared to take 
short odds about a maiden 
hurdler should - consider 
Helexian. 

The first to run is Doonally. 
•among the runners for the 
Eridge Handicap Hurdle. 
Reasonably consistent but 
rather one paced, Doonally prob- 
ably ran his best race in a long 
while' with conditions against 
him when at Huntingdon for 
the two-mile Glatton Handicap. 

Doonally, a son of Gold Rod, 
has inferior opponents this time 
and an additional five furlongs 
in his favour. I hope to see 
him with a clear-cut victory over 
Brighton Marina. 

That useful sprinter Helexian, 
who has yet to score over 
hurdles, cannot be opposed in 


capable of beneficial use, that 
permission for some beneficial 
use ought to be granted, or that 
the purchase notice should be 
modified to require acquisition 
by another local authority w 
statutory undertakers. 

If a local authority was not in 
a position to advance any such 
grounds, and no other local 
a ulhority or statutory under- 
takers would agree to comply 
with the purchase notice, it baa 
no option but to serve a compli- 
ance notice under (a). 

Land acquired pursuant to a 
purchase notice by way of a 
compliance notice was aptly 
described as “acquired compul- 
sorily ” under section 45 (4) Of 
the 1976 Act. It followed that 
Metrolands disposed of the land 
on August II 1976 and was 
chargeable to development land 
tax on that disposal. 

The appeal should bo 
dismissed. 

■A 

Lord ’Wilberforce, Lord Simon, 
Lord Russell and Lord Scarman 
agreed. 

For the Revenue: D. R. Woolen 
OC, Robert Carwealh and Vi*- 
cornit Dill tome (Solicitor, Inland 
RiTciiur ). 

For Metrolands: D. C. Potter QC, 
R. 31. K. Gray and N. G. A. Kmff 
( Whiichause Gibson <£ Alton, 
apcnls for Henry Fallows & Co, 
Dancen ). 

By Rachel Davies 

Barrister 

the second division of the Deal 
Novices event after his second- 
place run hrhinri Young Dusky 
on the Bedfordshire course. 

However, he will nof be 
offered at realistic odds, follow- 
ing that run, and a better bet 
is probably tbo fourth in that 
event. Noon Gun. 

Looking ahead lo the start of 
the Flat, Doncaster's March 25 
opening day also sees the 
launch of Marshall Racing by 
a former Ladbrokes racing 
manager, John Marshall. This 
is a credit betting operation 
which will attempt to offer a 
more personal service than is 
sometimes available from major 
organisations. 

Marshall Racing will deduct 
only 9 per cent betting tax pro- 
vided the Chancellor does not 
decide on any adverse changes. 
It will be out to compete with 
the “big four” multiples over 
competitive ante-post odds. 

FOLKESTONE 

1.45 — Low Tide 

2.45— Seed Pearl* 

3.15— Doonally*** 

4J.5 — Helexian 

4.45— Noon Gun** 


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14 


THE MANAGEMENT PAGE: Small Business 


EDITED BY 



While UK small businessmen hope the Chancellor will impart good 
news today, Terry Dods worth assesses the climate in France 

Where socialism meets 


on 


• A dear distinction of the role 
of the nationalised sector in sup- 
porting smaller companies. Uhls 
is an aspect of the nationalisa- 
tion project which has not re- 
ceived much attention, as yet, 
but which is conceived as an 
important aspect of the pro- 
gramme’s “locomotive" effect 
on the rest of industry. 

Toe Government would like 
nationalised companies to draw 
up “ contracts of stability " with 
their smaller satellites to give 
them greater security. Measures 
would include commitments on 
payment periods, to be held to 
between 60 and 90 days against 
120 days often, practised by the 
hi g companies with sufficient 
muscle; agreements not to edge 
out suppliers by setting ujp acti- 
vities in-house that had previ- 
ously’ been done outside; and 
attempts to split the economic 
impact of serious reductions in 
business between the larger and 
smaller companies. 

• Big companies wall also be 
encouraged to help their satel- 
lites with exports and research, 
making their own facilities 
available where necessary. 

• There is to be increased aid 
for research workers attached to 
small companies, whale credits 
for ANVAR, the state industrial 
innovation body, are to be 
doubled to FFr 720m. These 
extra funds are designed to 
bridge the financial gap between, 
the design of a product and put- 
ting it into production. - 

• To- help potential young 
entrepreneurs, the Government 
also wants to make it easier for 
middle managers to leave a com- 
pany and. then return if they 
faiL Under this scheme, jobs 
would be kept open for three 
years, with the Government 
footing t he blR. 

• An improved system of 
advisory committees for young 
entrepreneurs is to be encour- 
aged. The aim is to make advice 
available from experienced 
managers and bankers, rather 
than bureaucrats. 

• An experiment is to be 
launched to set up a high tech- 
nology workshop that wS 1 make 
research and development 
material available to industri- 
alists at a reduced price. 

• A further effort wiH be made 
to reduce the time needed to set 
up a company In France, one 
of the most red-tape ridden 
countries in the western indus- 
trialised word. According to 
Industry Ministry figures, it 
takes seven months to set up a 


for companies to make freely 
available an address “ at 
which service of any docu- 
ment will be available" means 
that they have to disclose 
details of where they live. 

This is not the case. For 
the vast majority the busi- 
ness address will suffice or, 
where permission Is given, 
the address of a solicitor or 
accountant (Disclosure has 
to be made on stationery, on 
a notice in premises and on 
request to customers and 
suppliers.) 

The new requirement 
replaces the old obligation to 
register with the Registry of 
Business Names. Set up in 
1916 as an anti-espionage 
measure (aliens were 
suspected of setting up In 
business tinder innocuous 
sounding British names) the 
Registry was discontinued 
last month. 

T. D, 


“ IF YOU want to create new 
jobs, you first have to create 
new companies,” Yvon Gattaz. 
head of the French employers’ 
Federation (the Fatronat), said 
the other day. The Govern- 
ment agrees with him. But it is 
about' the only point on which 
the two sides,' locked in a con- 
tinuous battle of words for the 
last nine months, are on the 
same wavelength. 

Watching this conflict is a 
little like being a spectator at 
a skittle game in which the 
Government keeps putting up a 
new target that is then un- 
erringly knocked down by the 
Fatronat. 

The Industry Ministry may be 
increasing its aid — but the 
Treasury, say the employers, is 
taking away more at the other 
end; subsidised interest rates 
may be on offer— yet they are 
still extremely high; there may 
well be a new effort to create 
companies — but the enlarged 
nationalised sector could 
swallow up many of the tradi- 
tional subcontractors: small 
businessmen may be exhorted 
to invest— but they are still 
steadily losing control to the 
unions. 

This ideological argument 
derives from two radically dif- 
ferent views about the mech- 
anics of a modern economy. For 
the traditional wing of the 
Patronat, free market rules, 
with the opportunity- to earn 
profits and run a strictly inde- 
pendent business, are What 
counts. In France, it is true, 
this freedom has always been 
laced with a certain amount of 
Government aid through sub- 
sidies. But small business has 
maintained a strong, bourgeois. 
auti-State ethic, impregnated 
with the idea that the “ patron ” 
is really boss and that private 
capital is sacrosanct 

Socialism runs counter to 
this thinking on two levels. 
First, it wants to increase 
workers’ rights, raising the 
lowest wages (usually paid in 
the smaller companies), giving 
greater security and reducing 
ihe privileges of the patrons. 
Since the change of Govern- 
ment last summer, there have 
been cases of dismissed trade 
unionists being reinstated; and 
ihe employers feel themselves 
particularly victimised by the 
rise in social security charges, 
wealth taxes and taxes on busi- 
ness expenses. 

Second, the Socialists believe 
that new technology has 
changed many of the old mar- 


In brief . . . 

WITH THE Chancellor due 
on his feet later today this 
may not seem the ideal time 
to draw attention to a book 
which boasts “details of the 
1981 Finance Act” However, 
Tax Saving for the Family 
Business, written by Coopers 
and Lybrand tax specialists 
and available at £1.95, 
answers the questions most 
often asked by smaller busi- 
nesses. Incorporation, stock 
relief, employee benefits, pen- 
sions and capital transfer tax 
planning are some of the sub- 
jects covered in the question- 
and-answer style. There are 
plans for it to be updated 
each year. 


TWO COURSES for those 
thinking of setting up their 
own business are taking place 
this Saturday — and it’s not 


ket rules. This is an approach 
that looks beyond short-term, 
cyclical growth patterns and 
takes into account the develop- 
ment of international competi- 
tive pressures. French goods 
have become increasingly un- 
competitive in the past ten 
years, it is argued. Hence the 
nationalisation programme, the 
big investment and research 
effort in the large companies; 
and hence, also, a programme 
of development for small com- 
panies. 

These measures for the so- 
called PMEs — the Petites et 
Moye lines Industries — are also 
based on a clear set of theore- 
tical principles. In France, the 
PMls are a precisely defined set 
of companies employing be- 
tween 10 and 499 workers. 
There are reckoned to be about 
45,000 of these in industry (as 
opposed to commerce), account- 
ing for 37 per cent of indus- 
trial production and 25 per cent 
of exports. 


* Ministers claim that 
government views are 
getting across but 
scepticism reigns 
imcompromisingly 
in the Patronat * 


The Government makes a 
clear distinction between two 
different types of company in 
this category. On the one hand 
are the sub-contractors, essen- 
tially suppliers of parts that 
bigger groups do not want to 
make. These enterprises, 
clustered in dependent state 
around the larger organisations, 
are enormously sensitive to 
their fortunes. On the other 
hand are the new technology 
companies, businesses that have 
generally been started sinew the 
war on the basis of one good 
idea, and which have a discrete 
market, quite often on a world 
scale. 

The main thrust of the new 
measures for the PMls is there- 
fore designed to try to mod- 
ernise the sub-contracting type 
of company, while giving a new 
stimulus to the creation of inno- 
vative enterprises. Among the 
various propositions are: 


too late to apply. One is at 
Darlington College of Tech- 
nology and details can be 
obtained from Enterprise 
North, Mill Hill Lane, 
Durham (Tel: 0385 41919). 
The cost is £5.00 per person 
or £2-50 for students. 

The other is at Hillingdon 
Civic Centre. London and Is 
organised by the London 
Enterprise Agency and the 
GLC. Details from LEntA, 69 
Cannon Street. London, EC4 
(Tel: 01-236 2676). Tickets 
£15 (inc VAT). 


JUDGING by recent calls to 
tbe headquarters of the 
50,000-stroug National Federa- 
tion of Self Employed and 
Small Businesses, many small 
firm proprietors seem to 
think that Seetion 29 of the 
1981 Companies Act amounts 
to a “ burglar's charter.” 

Husband and wife busi- 
nesses have been particularly 
anxious that the requirement 


IjOOS " 1 

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AUTOMOTIVE ACCESSORIES 
SLASH YOUR SELLING COSTS — WITH ME! 

Arc rw a* u I am about ttu disproportionate costs of running 

your own direct sales Kxtn? l represent a well-known tw me cw iwny 
selling motor accessories to cask end. curies, wholesalers, (actors and 
multiple retailers, I am seeking to literally slash, the cost ot m sates 
activity • by iolnrno forces with one or more similar eomiwnles,- - The 
oWcctlre will be to retain our financial Independence bet rationalise the 
Individual sates forces . into one common ttnntiy controlled team. The 
financial benefits could be very considerable! . .. 

If you are Interested In twlwlfit tWs further Pripripals chpuld . writs tp 
mty in aficohite conSttentcw Man Director, fle* F3QQ2m FUuxiu Tffltfifc 
TO. Cannon Street. EC4P A BY. 


WANTED to PURCHASE 

« Hlgh-ylaldlng Industrial and 
commercial property investments 

• Sites with development po modal 

• Property companies with land 
■ banks or existing portfolios 

THE DEACON GROUP 
‘10 Queen Sheet. London WT 
01-409 JW7 


-#> •• ' • 


Lf 

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"a* . . . K . > V*. %* 

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Yvon Gattaz, president of the Patronat; the French employers 
federation: “ An enterprise is like a bicycle, it keeps m balance by 
moving forward ” 


FRANCE'S PETITES 

ET MOYENNES . 

INDUSTRIES (PMI) 

9 hare between 30 and 499 
workers, and a turnover of less 
than FFr 100m (916.7m). 

• comprise 45,000 companies 
(19 pear cent of France’s total); 
and employ 2.6m workers . (45 
per cent of industrial employ-' 

meat j 

• account for one in two ex- 

ports; about 25 per. cent of 
France’s total exports, but only 
1,000 realise more than 60 per 
cent of sales overseas.. . . ’ 

• are particularly strong in the 
consumer goods sector, binid- 
mg , and capital goods !.'■ • 

• account for 37 per cent of 
industrial production, and 25 
per cent of industrial invest- 
ments 

• between 1974 and 1977 they 
created jobs (+1.9 per cent), . 
while large companies reduced 
them (-4.8 per cent) ... 

• between 1970 and 1976, the 
200 companies wfth the 
strongest economic growth m 
France (a real rate of at least . 
15 per cent a year), were all 
PMls 

Source: Industry Ministry 






■*r ; . ' ■ ' ' 

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-SIT,- .. 





PienW Dreyfus (left) W 


company in -France, against 24 
hours in the U.S. 

• financing is to be reformed, 
partly through the development 
of the nationalised banks, which 
are to be forced to get closer to 
industry, and partly through 
moves to set up new risk capital 
instruments. 

• The PMls are also intended 
to benefit from the range of sub- 
sidised credits made available 
to French companies by the 
Government up to a ceiling of 
FFr 24bn this year. Funds vary 
from close to market rates cf 
around .18 per cent at the 
moment, to a "super-subsidised” 
13.5 per cent for FFr llbn of 
credits which have to be spent 
in specific areas such as energy 
saving, robotisation, exports, 
and job creation. 

• In addition, tbe system of 

subordinated loans (“ prets 


participates”), a kind of quasi- 
equity on which interest pay- 
ments are adjusted to profits. Is 
bein g expanded from FFr 2bn 
to FFr 3bn. This is aimed at 
encouraging French small 
businessmen; traditionally sus- . 
picious of opening their capital 
to strangers, to move towards 
equity-type funding as a means 
of reducing the high level of 
debt financing. 

.It is not difficult to find 
critics of many of these ideas. 
Although officials claim that the 
Government’s views are getting 
across when ministers' meet 
s mall- businessmen face to face, 
scepticism reigns uncompromis- 
ingly in the Patronat Philippe 
Combin, director of financial 
affairs, openly doubts that many 
of the projects will get off the 
ground, while he argues that 
the different financial measures 


of the new Government have 
had. an overall negative impact. 

“With the Socialists you get 
a system which takes more from 
enterprises merely to redistri- 
bute it back again,” he says. 
“And you often find that -the 
new charges are higher than the 
new redistributions.” 

He goes on to make a fairly 
convincing case for the fact that 
small companies are now in a 
rather worse financial position 
than in the past Increases in 
social security payments, local 
rates, the extra cost of the fifth 
week of annual holidays and the 
shorter working week have all 
chiselled away at margins. 

The signs are that the 
Government has taken the 
point on these issues, and will 
now try to hold charges on 
industry at aroand the present 
rate .of 43 per cent of GNP; 


reckoned to be . the highest in 
the West. 

But where it win not want 
• to compromise is over the ques- 
tion of pushing and cajo Sng 
and pr essurising ; industry to 
modernise. 

On this point there Is some 
common ground between tbe 
Government and the employers. 
Gattaz himself 4s a product 
of the new wave* of mnovaJive 
entrepreneurs -that have 
emerged since the war. He set 
up his own company about 30 
years: ago, has -established an 
intematiohal business in speci- 
alised. micro-circuitry,, and. 
believes , passionately in com- 
panies of A .“human (Le. 
smallish) .scale/' . 

Leading . Ministers, like 
Jean-Piefre - Chevenement, at 
Research. ... Michel Rocard at 
. Planning, . or Pierre Dreyfus 


and Jacques Delors at Industry 
and Economy, all share., a 
similar enthusiasm for "tech- 
nology. They are also con- 
vinced, like Gattaz. that ihe 
jobs problem can only . be 
defeated of new smalt com- 
panies are created. 

But while general objectives 
for the small business sector 
m ay be shared, there still 
remains a big gulf on the means 
of achieving those ends. Gattaz 
continues to put the .emphasis 
on markets and profits; "An 
enterprise is like a bicycle, it 
keeps in balance by moving 
■forward,” he said receriBy.’ - . 

The Government has; -to 
remove fears that it is putting 
a brake on that movement if it 
■is to win employers’ confidence 
in Ihe general refurbishment of 
French industry that it Is 
advocating. 







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Dirfrix. r< n. 




■ V V : : ; v ^ \ '• ■, 


.COMPANY 

f -'address-: ' ' : 

1 ..... . • 


ArorateriTheRc^BaiifcofiaXlairiGioopBndancoflhcIiitcf-AlpliaGrb^rfBaiikj; 














Stockbrokers 

Can you earn 
£15,000 to £100,000 pins? 

No Liability 

Onr.Olent a highly professional 
U.K. 5rm of Stockbrokers, believes 
u providing every possible back-up 
service to Associates. As a result, the 
'Hate home" earnings of Associates 
last year ranged from £15,000 to over 
£70,000. 

We. are currently searching for 
individuals or groups who, having 
establish e d a private dient and/or 
institutional clientele, now wish 
either to : «tricate themselves from a 
partnership liability or to concentrate 
-their time and efforts on servicing 
atid developing their own personal 


_For an initial talk, in strictest 
confidence, please contact Anthony 
femes or Fiona Stephens. 


. International Recruitment Consultants > 

4*Carter Lane, London EC4V 5BX. 01-236 7307 - . 


INVEST IN THE LEISURE INDUSTRY 

Buy a narrowbcstiorcruiser on the Thames, Avon, Severn or Wey. 

? Leasing arrangenkmtsf Taxbenefiis- Guarameed returns 
* New aod secondhand iianowboais and cruisers- £10j000 -£30$00 
■* Special discpnmpurchasercheiira 

Xdekibr companies or indhdduals seeking tax efficient in vestment. 
Forfuriher detaQstdephooeTony Stacey oh 073522 4424 orwriic to: 

Wargrave-on-Thames Holiday Cruisers 
' The Boat Bird, Station Rood, 
Wargrave-<m-Tbaines, 

Berkshire RG10 8HB. 


ARE YOU FINANCING 
YOUR CUSTOMERS? 

“ Obtain details of our 

• FACTORING AND INVOICE DISCOUNTING SERVICE 


ARBUTHNOT FACTORS LTD 

Breeds Place, Hastings, TN34 3DG 


Contact: S. E. Finch Teb 0424 430824 
orTelephone: • Leeds 0532 444578 

London 01-638 1301.' 

Birmingham. 027- 454 7962 Nottingham 0602 598821 
Newcastle 0632 614545 Bristol 0272 279555 


GidMreamJlinmimble 
Wth Factory Warranty 

Buy tSraCtly from manufacturer. 
Superlative executive jat aircraft 
fifty rspeded by factofy experts. 
Complete spacfScations wabble 
from John C. Norton, GuKstream 
American Corporation, P.O. Booc 
2206, Savannah, Georgia 31402 
USA. (972J964-32XJ, 


ftwicaarAiiciian 


YOUR OFFICE IN 
LONDON 

SUPERB MAYFAIR LOCATION 
Personalised telephone, telex end 
mail service E2&.50 par month or io 
include occasional use of offices 
£57 per month. Alt secretarial/ 
commercial services available.- 
Ad dress never advertised . 

For details telephone Lloyd Adams 
on 01-489 0321 or 

write to Bax F2S7L Financial Times 
10 Cannon Street. EC4P 4BY 


ASEAN 

COMPANIES WITH SUBSIDIARIES 
IN SOUTH EAST ASIA 
Former Managing Director ol Com- 
panies in South East A sis would 
welcome the opportunity to discuss 
growth development in your ASEAN 
Subsidiary with a view to returning 
to South Eaat Asia for abort or 
long term .assignment. 

Wriza Box F29T8. Financial Timas 
10 Cannon Street, EC4P 4BY 


REQUIRED BY PRIVATE 
PROPERTY INVESTMENT 
COMPANY 

• Prime Development Sues 

• Secondary Commercial and 
Industrial' Investments 
Packages from £500,000-£5m 

* Property Company. Portfolios 

* Agents: retained where necessary 
Wriza Box F2992. Financial Tunas 

TO Cannon Street. EC4P 4BY 




INTER NXTI OKAL .> ARTN «IS. CcrmJUttri 
end ttectronfu. GonSdontial **£•**■ 
Europe and USA. .Prttlli; SWhww 
Assoc., FO Box 115; Amersham. BocKc. 
02*03 4556. 

PRIVATE INDIVIDUAL - With funds In 

MK*ta oe Cl., million reomred "■ 
westfain BanUnfl -»n»o»ltton. Write 
Box j.jooj, Financial Timet, 10. Can- 
non Sant IC4P 4 BY. 

USA EXPANSION Company raerlwredln 
business stft-mw and francnislno 
. tllwita wishing to **D±no Into me 
wMi malor nrarfctt. . Wnstrum .2425 
Pott M.. Sooth port CT 06490. PWne: 
203-255*840. 

POTENTIAL WOODLAND «"*««*«• **•5- 
!"B advlce/tvt _DUlurtng a poly: H. A, R. 
Long. F.R.LCSm HalicouftFarm. 

-hSv Reading. Series. 073S21 33io. 
TELEX OVERLOAD FACILITIES near Lon- 
doa. Stock i Eashanoe. Too many «"«- 
sMttT Ooerawr itek7 We’ll help. 
01-628 4SS4. 

PtVCRSfFtCATlON WANTED7 — We »re 
seeking. tJUtributlmi for twflta ouartiw 
•vntti. chamoU leather, for svPfr™;*^- 
drngljEi. car sections. ,h»r U.K.. 
switcertand and Austria. Reft Y 1 **®,? 

2130 Bressduetr .Belghini, ■ t Sercl*«lel 


YEAR-E1MO 
TAX PROBLEMS? 

Shelter that CotpDra’tiorr Tax 
bill by investing in containers 
and earn a return on capital of 
up to 50% pa . Individuals too 
can earn up to 20% tax free. 

F ull details (rom: 
rwf LANDLESS 
iKtCtLij CONTAINERS 
■' U&TKJU UIVKTH3 


mm mtmi mm 


PROFESSIONAL UA BASED 
PURCHASING OFFICE. 
Purchase U.5. mad* aoods as vour 
Aaent. Substantial savings effected 
by Agency arrangement opposed to 
typical Sales Rep. or Broker! Your 
Competitors are doing il!J Source 
Investigation. Negotiation. Contracting 
— Represent year interests In tbe U.S. 
Visiting the U.K. weeks of March 22 
and 29. . . 

For appointment telex 710-456-9845 
. or write Box F.3007. Financial Times. 
10. Cannon Street. EC4P *8Y. 


TAX BASED LEASING .- 

London based " Lessors Agent " .offers 
fun portfolio management inrludlna 
Obtaining excellent & continual lessee 
business, negotiating the leases, rates, 
documentation and subsequent admini- 
stration, Le. eaiHv terminations, etc. 
Proven record and willing to operate 
from lessors o (flees if reoulred.- 
Reply to Box F22SB 
Financial Timas 
10 Cannon Szract EC4P 4BY 


Building products 

Norwegian importer of building 
products seeks articles for sale 
, on the Scandinavian market 
Plaasa writs with lull details to: 
Guterud A/S, Marida&veten 101 
Oslo 4, Norway - Telex: 17497 



v ag 

"«5r5as3sss 

Times. ID. Cumon Street. EC4P ■ »«• 

M^^YWimoNENa^ERjiNa 

ESSE 

Times, TO. Cannon Street. EW 


BUSINESS ADVERTISING 
RATES 

£2*1 00 

Per single column centimetre *■ 

per line swu 

Premium positions available (minimum size 
30 column cm) £35.00 per single column em 

For further details write to: 

Oassified Advertisement Department 

Fi nan cial Times 

10 Cannon Street, London EC4P 4BY 

All business advertisements are subjecUo^o^o^ 

tons of acceptance «hieh are ^ profe6Si „nii 

^ .■METBSS “lorU ilO commitments 


KUWAIT COMPUTER 
SYSTEMS CENTER 

A well-established Computer Company in Kuwait is currently 
looking for British or American Companies who are interested 
in having representation in Kuwait and/or ad Gulf areas. 

Main areas of interest are. Computer Education and Training. 
Consultancy, Software Development and Micro-Computer Systems 
(Hardware and Software), 

Those interested should Telex or write with complete information 
to: 

GENERAL MANAGER 

KUWAIT COMPUTER SYSTEMS CENTER 

P-O. BOX 1196 — SALMI AH — KUWAIT 

TELEX: 23716 KT - 

TEL: 452685/6/7 


Do you have 

ONE MILLION POUNDS TO SPARE: 

To purchase * sizeable interest in an extremely successful private 
company which has already established over 150 branches through- 
out the UK in less than 2 years. 

It is the only company of its kind in .the world. It’s new, it’s unique, 
it’s extremely popular and profitable. In point of fact, you will 
probably use it this year yourself, but it needs help and a privace 
investor if it k to capture the world market before it is emulated, 
and a million pounds will do it. 

Replies to Tha Chairman. Box F3012 
Financial Timas. 10 Cannon Street. BC4P 4BY 
Finance Companies need not reply . 


THE COMPLETE SECURITY 
SERVICE 

ALL PROPOSALS WILL BE GIVEN CONSIDERATION 
Services operating Worldwide include: Couriers. 
Personal Protection Officers — Recovery work 
ALL CONSULTATIONS ARE IN THE STRICTEST CONFIDENCE 

. £aU dojwjjt iola3 oUlfaJl aaaa. 

Telephone Point International 
07-202 3647 24 Hours 


SUCCESSFUL INVESTMENT GROUP 

are interested in acquiring loss-making company 
in the Property Sector or Trading Company with 
properly assets up to £10,000,000 avuiable. 
Principals or their retained professional, 
advisers reply in strictest confidence to: 

Box F.2997 

Financial Times. 10 Cannon Street. EC4P 4BY 


TAX SHELTER 

IBA INVESTMENT EVEN MORE ATTRACTIVE 
For corporate -and private investors 
I BAs now available in prime southern locations with rental 
guarantees and several leasebacks to Local Authorities 

TAYLOR CRISPIN & CO. LTD. 

15 SOUTH MOLTON STREET, LONDON W1Y IDE 
TEL: 01-629 9881 - TELEX: 888970 


APPROX. £1a. p.a. WELDED STEEL FABRICATIONS 

Turnover available frbm company wishing to cease manufacturing 
but continuing to sell. Strong customer range including good 
selling patented products. Deal to include all or some of the 
plant and specialist management could be available. 

Write Box F30T8, Financial Times, 10 Cannon Street, EC4P 4BY 


UNSECURED 

LOANS 

For members of the 
Professions 

2% above clearing bank base rate. 
Interest only repayment- . Plans# 
phone Patrick Campbell 01-629 988V 
lor detail*. 

ERSKJNE FUND MANAGERS LfD 
15 South Molten Street 
London W1Y IDE 


DALLAS. TEXAS INVESTMENT 
BROKERAGE FIRM 

ie seeking affiliation with financially- 
oriented group who will serve as 
conduit for investors seating U.S. 
investments or acquisitions. Pieaie 
send your credentials and letter 
stating your areas ol inter est t o: 
H-R IntraQna. Inc. Suit* 770 
South Tourer. 8585 Stemmons 
Freeway, Dellas. Texas 75247, USA 


TAX 

SHELTER 

For corporate and private investors 
100% I BAs now available in prime 
southern locations with rental 
guarantee* md several leasebacks 
to Local Authorities. 

TAYLOR CRISPIN ft CO LTO 
15 South Molten Street 
London W1Y IDE 
Tal: 01-629 9891 - Talax: 888970 


CATERING EQUIPMENT 
COMPANY 

FOR ACQUISITION 
OR MERGER 

With unique product line* seeking 
. major cash injection to develop 
market potential world wide. 

Write Box F3010. Financial Times 
10 Cannon Street. EC4P 4BY 


AGENT 

HOT METAL APPLICATORS 

WeU established Swiss Company 
requires sole U.K. Agent for com- 
prehensive ’range of Hot Metal 
Adhasive Applicators. 

Details to: 

•SALE TIINEY ft CO LTD 
' 28 Queen Anna** Gate 
London SW1H 9AB 
Reference: HM 


Sales Representation 
WANTED 
US Real Estate Fund 

Fund seeks 1st class sales Iroce to 
market rts shares worldwide. Good 
commissions. 

. Please write to: 
JohnKsarins 
Box 50747 
Madrid, Spain , 


SOUTH AFRICA 

Assignments undertaken by U.K. 
marketing/accouhtanc ■ executive 
visiting 5.A. April 1982’ - Dec. 
. Contact 

Beaulieu (0590) 612112 


Franchise 

World 

J^How to be your own bos* with 
less risk, FRANCHISE DAY, 
Portman. London, March 27. 
'ArMaiazIne arid directory with 
the bast franchises. 


WE’VE JUST TURNED' 

£15,000 


INTO 


£23,430 

INJUSTONEWEEK 


If you are a private company director and wish to know 
ho w we achieved it Ring us or fill in the coupon. 

Gihnartin Investment 
ManagementLimhed 

<* ■ . Investment and Financial Advisers, 

26, Ecdeslon Sreet, London SW1W 9PY. Tel: 01-730 9202 


Tbs fiShTiar tm Investment Management limited, 

26, Ecdestan Street, London SWIW 9PY1 TH: 01-730 9202 

I am a private company director and wish to know how yai achieved it. 

Pfease send me details. ' . 


Consider 
Container Leasfog 
ISO Containers qualify for 
full Capital Allowances for 
Companies. 

We can supply to ordfit and 

lease-manageforyon. 

Qpff a rt> - 

Mmvw CoHimgrMaiagctocntLtd 

ITREEPOSrLondoaWCZR3BR- 
THepbonc 013994080 gttg) 


GLOBEWIDE 

is still in a position to arrange: 

UP TO £5400.000 FOR 

1. Corpora® Finance 

2. Equity Finance 

3. Term Loans 

4. Foreign Currency Advances 

5. Finance lor Property Develop- 
ment end Invealment 

6. Residential Mortgages: 
Minimum E50.000 

Principal t only should write to: 
Globewide Finance Limited 
77 Moscow Road. London W2 7EL 

Tel: 01-727 6474 - Telsx: 8863820 


By Order of British Steel Corporation ( Chemicals ) Ltd . 

New and Nearly Completed 

BENZOLE REFINERY 


»T 


FOR SALE FREEHOLD 

Or for Removal as a whole or In sections 

Designed to process 125000 c.p.a. of Coke 0*en Light Oil 
using the Litol process and Stretford units 

Tank Farm of 18,600 tonnage ★ Road & River facilities 

GAVLKX 

LEOPOLD FARMER 

Raf: NAS KBR P.O. Box 370 

50/51 High Holbom, London WC IV 6EG Bristol. Connecticut 06010 U.S A. 

Teh 01-405 8411 Telex: 897377 Tel: 203 589-2900 Telex: 962 402 


P.O. Box 370 

Bristol. Connecticut 06010 U.S A. 
Tel: 203 589-2900 Telex: 962 402 


Cash Voucher 


"I 
1 I 


This cash voucher 
entities your company 
to an immediate 

75% CASH 
AGAINST 
INVOICES 

Subject lo opcvorai 



Cash flow problems?Then cash this! 

Need cosh now? You Ve got it light there on yoor books! 

We win give yon 75% cash against your invoices- money yon can 
put to work today. Yon get the 25% balance, less our charges, when 
yonr customer pays. And tlie customer remains totally unaware 
of the agangemenL Post thisToadher now with your name and 
addrets, or phone us. 

Confidential Invoice Discounting Limited 

Sovereign House, Queens Road, Brighton BN1 3W£ 

Telephone: Brighton (02731 21211 Tel exi 87582 


FINANCE FOR 
GROWTH 

Factoring provides finance, beyond 
conventional borrowing limits, 
without surrendering equity or 
management independence. 

Alex.Lawrie Factors Limited 

For details contact: London (01 ) 626 0484 
Bristo](Q272) 291388 Covemiy(Q203)S6653 Manchcsterl061) 834741 5 
Ncwcastle(0632>325879 Edinburgh(031) 2264599 Banbury<0295) 56041 


OFFICE FURNFIURE 

40% OFF LIST PRICE 
EX STOCK 

in rosewood, walnut, light oak 
and ocher finishes 
Complete office furniture 
Executive and operational ranges 
brochures available on request 
STUDIO UNEA 
(OFFICE FURNITURE) LTD. 

~ London OT -805 2566 
Birmingham 021-784 8944 



EQUITY 

PARTICIPATION 

Young construction and develop- 
ment company wishes to broaden 
its eaprtal base for long term 
expansion. Equity participation in 
the order ol £0.5m to Elm sought 
preferably from public group. 

Reply to Chairman 
Box F3Q11. Financial Timas 
10 Cannon Street. EC4P 4BY 


DESERTS 

A newly formed company In the 
United Arab Emirates wish to 
represent British companies [in- 
terested in commerce and material 
supply) throughout the Gull. 

Write to: 

DESERTS 

P.O. Box 687. Abu Dhabi 
United Arab Emirates 





mm. 


: PENSION SCHEMES 

I should have a copy of 

I this important new book 
B giving advice on 

; CONTRACTING OUT 

8 Clip this ad to your 

I letterhead and send to: 

! NOBLE LOWNDES 

■ and Partners Limited 

[ Norfolk House 

* Wellesley Road 

J %■*# Croydon CR93EB 
I or ring your regional office: 

I CROYDON 01-6862466 

, BIRMINGHAM 021-2332371 


Industrial Investments For Sale 

with 100% industrial building allow- 
ance ready now for financial year 
1981/82. Singfe units from £45.000 
or multiples available up to £l.2m. 
Major public company guarantee of 
rants. Long leasehold for maximum 
tax effectiveness. Details Irom: 
CHESSHIRE GIBSON & CO 
Tel: 021-632 4292 or 
MAGUIRE ft CO 
Tel: Worcester 25996/7 


z BRISTOL 
I GLASGOW 
| LEEDS 
■ MANCHESTER 
1 WATFORD 


0272732271 
041-332 6582 
0532457401 
061-6724661 
9248911 


WHY LEASE YOUR 
NEXT CAR? 

.You can buy on our 
‘ Purchase Plan 
*.10% Initial rental 

* 48 months repayment 

* No VAT on rentals 

* Ultimate ownership 
FERRYWISE FINANCING ft LEASING 

Tel: Esher (0372) 62467/66780 


EXHIBITION 

ORGANISER 

WITH SALES ABILITY 

-Wanted as investor partner in 
rapidly expanding organisation with 
three European and two USA shows 
already established. 

Write Box F30I6, Financial Times 
10 Cannon Street. EC4P 4BY 


OLD-ESTABLISHED 

PRIVATE COMPANY 

would welcome enquiries Irom pen- 
sion funds- ate. regarding sale and 
leaseback of their prime freehold 
sits in main. road position in large 
south coast town. 

Write Box F3013. Financial Timas 
10 Cannon Street, EC4P 4 BY 


PLANT AND MACHINERY 


ANCHOR CHAIN 

500 tons. 100 mrii U3 stud links 
Most in 15 FTM lengths 
Only £175 per ton + VAT 

J. T. LEAVES LEY (ALREWAS) LTD 
Alrewas. Burton-on- Trent, Staffs 
, _ (0283) 790833 

Talax 3432S Lesurp G 


W1CKMAN AUTOMATICS 
FOR SALE 

1*— 6 CI9TB and 1*”— 6 (1960) 
Multi Spindle Screw machines plus 
compretientlve ranee of tooling Includ- 
ing Threading. Chasing and Pkk-up 
attachment*. Both machines in “as 
now condition ” can be inspected under 
pawn- and are available I Or less than 
S0”„ of maker's current list price. 

. JiST. ^flher details contact Box 
F-3004, Pinpnel*! Tim**, IO. Cannon 
Street. EC4P 4 BY. 


A PUBLIC COMPANY 
IN THE CHEMICALS 
FIELD 

Wishes to expend its interests in 
similar or related areas end would 
be interested in talking to com- 
panies who wish to expand and 
become a member of an enthusi- 
astic public group while retaining 
their own management and direc- 
torate. Companies should be related 
to i he following industries: catering, 
shipping, building, je'nalorial. agri- 
culture end institution el. Those who 
feel they would like to consider this 
opportunity, please contact our 
Chief Executive. Box FS014 
Financial T imes 
10 Cannon Street. EC4P 4BY 


WORD PROCESSING 
BUREAU 

with £30.000 capital investment to 
date Maks investor partner to hefp 
continue growth. Principals only. 
Phone 01-948 2961 or 
write Box F3Q15. Financial Times 
10 Cannon Street, EC4P 4BY 


LIMITED COMPANIES 

FORMED BY EXPERTS 
FOR 07 INCLUSIVE 
READY MADE £105 
COMPANY SEARCHES 
EXPRESS CO REGISTRATIONS LTD 
Epwonh House 
25-35 City Road, London ECI 
01-628 5434/5. 7361. 9938 



BARROW 

34,000 sq. ft. 

fully engineered, single store}', 

JACKET FACTORY 

with super canteen plus 3 acres 

190 loyal and local skilled employees 
Up to date Pfaffs, Hoffmans, Veits and Unions 
Productive going concern 
OFFERS INVITED FOR 
LOCK. STOCK AND BARREL DEAL 
All offers will be considered 

Write: Mrs. Susan Braun 
P.O. Box 1 

30 High Street, High Wycombe. Bucks 


FOR SALE 

Successful tour operator 

Warranting pre-tax profits of f^m in the current 
financial year. 

Offers in excess of £4m in cash are sought for total 
equity of the company. Staged payments not 
acceptable. 

Principals only need apply. 

Write Box G.77S0. Financial Times 
10, Camion Street. EC-fP 4EY 


MARINE AND INDUSTRIAL 
EQUIPMENT 

A member of an industrial group, a company long established 
in the marine and industrial field with excellent world-wide 
marketing and service facilities, seeks to expand its activities. 
Substantial financial resources are available now for the pro- 
motion of products in the marine, offshore or related industrial 
fields. Sales agreements, developments of new products or out- 
right acquisition are all possibilities that will be considered. 
Principals only please write in complete confidence to: 
Managing Director, Box F29B8. Financial Time* 

TO Cannon Street, EC4P 4BY 


SWITZERLAND 

Establish a foothold in 
Switzerland 

Small successful company en- 
gaged in aluminium injection 
die-casting industry provides 
parts for electrical and electronic 
industry, engine pares, parts for 
household appliances, furniture 
and building materials and 
accessories. Established in 1961. 
No Debt — 1981 Net profit 20%. 
Resident permit available. Sale 
due to age of owner. 

For complete details contact: 
GLOBE PLAN SA 
Av. Mon-Repos 24 
1005 Lausanne, Switzerland 
Tel: (21) 22.35.12 
Telex: 25185 metis ch 


NEW RESIDENTIAL 
DEVELOPMENT— W6 
Financial partner required for 
attractive and viable new 
HOUSING SCHEME 
Principals only reply to 
Box F30J7, Financial Times 
10 Cjnnon Street, EC4P 4BY 


An Investment Opportunity 
has arisen In e small manufacturing 
business fn tha agricultural sector 
Situated in the Cambridge area. 
Good growth prospects envisaged 
with oarticipanon subicct to negoti- 
ation. Two investors required at 
Cl 0.000 each. 

Apply In strictest confidence to: 

Box F3021. Financial Times 
10 Cannon Street. EC4P 4BY 


EX-MINISTER 

MIDDLE EASTERN COUNTRY 

with high level contacts throughout 
tbe region seeks position with 
British or European company active 
in that area. Impeccable credentials. 
Will travel and represent or advise 
end administrate. Presently resident 
In London and m excellent health. 
Write Box F3O20, Financial Times 
JO Cannon Street, EQtP 4BY 


ELECTRONICS 

Recently acquired Company now 
backed by substantial resources, 
operating in mcdium.'high tech- 
nology electronics areas socks new/ 
additional products. Can provide 
cash, design, and manufacturing 
expertise. Will consider outright 
purchase, royalty arrangement or 
joint van turn. Strictest confidence 
observed. 

Principals only write: 

Chairman. Box £3005 
Financial Times 
' 10 Cannon Strooz. EC4P 4BY 


INVESTMENT 

A corporate aircralt can offer attrac- 
tive lax allowances and produce 
quick reaction to win business. 
Shared use or lease Opportunities 
on turbine-powered Piper Cheyenne. 
Immediate delivery. 

CSE Aviation Limited 
London Airport — Starrs ted f ^ j 
Tel (0279) 815632 L^l 1 

Tolex: 817940 mL~JM 


MANHATTAN. NEW YORK. 

Luxury Condominiums on 
fashionable Upper East Side. 

Excellent (or residence or invest- 
ment. Port Fmanco available. 
Discount lor cash. S3 18.000 upwards 
PPP SALES 

178-202 Great Portland Street 
London WIN 6AQ - Tal: 01-637 7481 


FRUSTRATED EXPORT ORDER 

Unused oil-fired hot water bailers, 
output 10.000KW. walking pressure 
150 p s i.g. Packed in shipping 
urates ready (or export, New price 
evor [29.000 each. Throe available 
nt only £12,500 each. 

J. 7. LEAVES LEY (ALREWAS) LTD 
Alrewas. Burton-on-Tiant. Staffs 
0283 790333 
Telex 34328 Lesurp G 


MANAGEMENT COURSES 


FRANCHISING 

A two-day practical seminar in franchise practice on the crucial 
factors and issues, pitfalls and remedies, to be held on 21-22 April 
19fl2 at the Churchill Hotel. London, Wl. j 

The faculty, leading specialists from the field, has written a special 
Manual — ■ over 100 pages — for distribution to delegates. 

For further details and Course Brochure please contact: 

Miss J. K. Van Wycks 

CROWN EAGLE COMMUNICATIONS LTD. 

on 01-636 0617 




























BUSINESSES FOR SALE 


SOFT DRINKS AND 
BOTTLING BUSINESS 

Manchester 

Old established manufacturers of mineral water and soft 
drinks with substantial contract bottling business* Freehold 
factory and offices at Redgare Lane oF 56.000 sq ft with 
adjoining long leasehold yard, and short leasehold ware- 
house at Gorton of 15,000 sq ft with yard. 

Enquiries tor. P. Hamsbottom 

Peat Marwick. Mitchell & Co., Century House 
7 Tib Lana, Manchester M2 60S 
Telephone: 061-832 4221 - Telex: 668265 
or W. F. Retford 
Peat Marwick, Mitchell & Co. 

1 Puddle Dock, London EC4V 3RD 
Telephone: 01-236 8000 - Telex: 888018 


RENAULT DEALERSHIP 

Haverfordwest, Pembrokeshire 

1981 turnover over £800,000 

Applications to: Peat Marwick. Mitchell & Co. 

Grove House. Grove Place, Swansea SA1 50 E 
Telephone: 0732 50496 


WET SUIT MANUFACTURERS 

Liskeard, Cornwall 


P 


80 employees 

Apply: R. J. Harris 

Peat Marwick, Mitchell & Co. 
Phoenix House. None Street 
Plymouth, Devon Ptl 2RT 


Beat, Marwlck,MitcheIl &Ca 


FOR SALE 


BUSINESS AND ASSETS OF 

MANUFACTURER OF MACHINE TOOLS. CAR TRAILERS AND 
FABRICATION ENGINEERS 
Location in Deal Kent 

Substantial freehold property and modem sheet-making machinery. 
Audited turnover year to May 1981 £265,000. Skilled workforce. 

For further details apply: 

J. M. Maimering AJLLCS* 

BAJR5TOW EVE S. 

Provincial House. 

218/226 Bishopsgatc, London, EC2M 4QD. 

Tel: 01-377 0137 


RIDGED KITCHEN FURNITURE 
MANUFACTURING BUSINESS 

FOR SALE 

Large Freehold Premises 
Turnover £l-5m 

Scope and capacity for diversification 
Contact John F. Powell, FCA 
Cork Gully, Abacus House, Gutter Lane 
London EC2V 8 AH Tel: 01-606 4040 


OLDHAM YARN MERCHANTS 

FOR SALE 

Receivers offer for sale the assets and businesses of S. M. 
Gates & Co. Ltd., established yarn merchants based in 
Oldham, with a turnover of approximately £13 million. 
■For further details contact the joint Receiver*.* 

M. C. WTTHALL and A. GRIFFITHS 
THORNTON BAKER 

Brazennou House. Brazermose Street 
Manchester M2 5 AX 
Telephone: 061-834 5414 


1 


Beer Keller Proprietor 

Eecefcer offers assets and good will of sevenfieer Sellers 
offering typical Bavarian entertainment. Annual turnover at 
sate of £1 million. QgUjHp 

fortbetdett&ixomA.J.Bmett,ICA, BB 


90 Box 207, 128 Queen Victoria Stree^London EG4P4JX. 


PRECISION AND REPETITION 
ENGINEERS 

SPECIALISING IN MINIATURE TURNED COMPONENTS 
Freehold property of 4,600 sq. ft. In pleaoent East Wdlanda l*j»ljjy. 
Modem well-maintained plant, uncillary equipment and skilled workforce. 
Present turnover £500.000 pj. 

Principals only plena apply In writing to 
BOX FT/72S, c/O St. James's House 
4/7 Rad Lion Court; Fleet Street London EC4A 3EB * 


REMOVAL/HAULAGE 

COMPANY 

NORTHAMPTON AREA 
Sale to include 4 furniture vehicles 
with 0 Licence. Modern folly 
equipped 6,000 sq ft warehouse on 
now 20 years (esse. Owner will 
accept small cash settlement for 
complete ta ke-ov er within 4 weeks. 

Write Bax <37775. Financial Timas 
IQ Cannon Street EC4P 4BY 


BUILDING SOCIETY 
RATES 


Every Saturday the 
Financial Times 
publishes a table giving 
details of 

BUILDING SOCIETY RATES 

on offer to. the public 

For advertising details 
please ring: 

01-248 8000 Ext 306 


Successful 

Employment Agency 
FOR SALE 

CENTRAL SUSSEX 
Long Established - Long Lease 
Substantial Price-expected 

Write Box G7768. Financial Times 
10 Cannon Street, £C4P 48 Y 


FOR SALE IN LARGE 
WEST COUNTRY CITY 

MEN’S WEAR/LADIES 
WEAR SHOP 


In valuable multiple position. 
Modern property 36 ft frontage, 
approx 1,600 sq ft. Leasehold 10 
yeate remaining. Turnover circa 
£200,000 per annu m. 

Write Box G7773, Financial Times . 


Ceafidctitiai Sepal Imestipatum cab- 
paov In security and protection work 
as well a claims In fesei and Insurance 
matters, present turnover jpororlmate+v 
£5.000 a month, available for purchase. 
Would be particularly suitable ter 
existing business In the Seid carrying 
Its own overheads and thus bench ring 
kom the ability to expend lb Income 
with minimal costs. Present office In 
London suburbs. Oners Invited at 
twice annual fees. Equipm en t anil- 
able by negotiation. Enquiries to: 
Baker A Waldron, 8, Bnndufts War. 

Broratcv, Kent, BR2 OUB. 


FOR SALE 

The Business of a 
Photographic Processing Laboratory 
- Together with 

Associated Mail Order and Retail Outlets 

* Located in Reading. Berkshire 
it Nine retail outlets in southern Home Counties 
it Over S00.000 films processed in 1981 
ir Modern high capacity Agfa machinery 
it Established network of independent photographic 
dealers and chemists 

For further details : — 

A. R. Houghton - 
TOUCHE ROSS AND CO. 

Hill House, 1 Little New Street, London EC4A 3TR 
Telephone 01-353 8011 Telex 261064 


ENGINEERS’ FASTENINGS & 
AEROSPACE COMPONENTS GROUP 

Receivers offer for sale the assets of a large group of 
companies engaged in the distribution of englneers’ fastenings. 
Assets include an aerospace component manufacturing division 
based at Basildon in Essex, and the stock, trade fixtures and 
fittings, storage and handling equipment together with the 
leasehold and freehold premises at 7 locations in England 
and Wales. 

For further details contact the ioint receivers: 

MR N. R. LYLE. THORNTON BAKER 
Chartered Accountants. Fairfax Houro. WwoodPlae* 
Holbom. London WC1V 6DW - Tel: 01-405 £422 
MB A. N. D. BIRD, THORNTON BAKER 
Chartered Accountants, Refuge Assurance House 
Baldwin Street, Bristol BS1 1SQ - Tel: 0272 28901 


m 


SHEET METALWORK COMPANY 

WELWYN GARDEN CITY, HERTS. 

Receiver offers for sale assets and goodwill of well-established 
sub-contract sheet metalwork company. Assets comprise 
4,468 sq ft leasehold factory unit fully equipped for cutting. - 
forming, pressing and welding of components from steel 
sheet. Turnover approximately £140,000 per annum with 

potential for improvement. 

Full Information from the Receiver: 

R. ST JOtM. J. BULLER 
THORNTON BAKER 
49 Mill Street Badford-MK40 3LB 
Tel: 1234 211521 • Telex: 828340 (TB BED-G) 


1 


GAMING MACHINE 
MANUFACTURERS 

Receiver offers for sale the assets of a well known 
manufacturer of gaming machines. 

Based in Stockport the company is a well established name 
in the industry, with a distribution network throughout the 
UK. Both stock and plant are being offered by the Receiver. 
Full Information from the Receiver: 

A. GRIFFITHS, THORNTON BAKER 
Chartered Accountants 
Brazennose House, Brazennosa Struct 
Manchester M2 5AX 
Tel: 081-834 5414 


m 


HIGH TECHHOLOGY 
MACHINE TOOL DEVELOPMENT 

Experienced Developer of unique CNC Portal Bore Mill reaching 
end of testing seeks equity partner. Investments of £70,000 
secures 49% of company. Present asset value about £165.000. 

E.V. BYGOTT 

Solicitor, Wem, Shropshire (0939 32302) 


MICRO-COMPUTER BUSINESS 
FOR SALE 
LONDON AREA 

Well established, with tremendous 
potential. Hardware, packaged and 
custom written software end 
engineering dopes. Clients include 
mu Hi -national companies, etc. 
Rapidly expanding, beyond the 
ability of the present owner, who 
may remain as a consultant and 
hand over control to a person who 
is capable ol developing tha 
business to possibly a natronal 
level. Present i/o approx. £500,000. 
Could, ba £1-2m within 1 year. 

Write Box <37770. Financial Timas 
10 Cannon Street. EC4P 4&Y 


RESIDENTIAL 

DEVELOPMENT COMPANY 

Wishes to sail part or the whole of 
its portfolio of showhouses to a 
financial institution and lease them 
back lor peijods up to 4 years. The 
maximum sum Involved would be 
approximately £500,000. 

Write Box G777S, Financial Times 
10 Cannon Street. EC4f> 4BY 


Service Office Suite 
Business fer Sale 

Current income approximately 
£78.000 nett- With tremendous 
potential for further increase. Otters 
in the region of £100.000 required 
for the business as a going concern. 

01-493 5611 


FOR SALE 

WBL-KNOWN INTERNATIONAL 
NON-DESTRUCTIVE 
TESTING COMPANY 

controlled by Managing Director wishes 
to sell the business and contact,. Home 
Counties based with International 
connections. Contact: 

E. P. H. Barber. FXj». 

Berber & Con Chartered Accountants, 
SI Church Street. Welwyn. Herts. 
Teh .Welwyn fO 438717 6077 


FOR SALE 
CARPET PLANT 

Zimmer Screen Printer together 
with complete finishing line and 
all ancillary equipment 
Cobble Carpet backing llfie 
Fairhaven Machinery Brokers 
22 Mill Street Bradford - 
West Yorkshire SOI 4 AS 
Tel: 0274 28244/2808B 
Telex: 51111 RELAY/FHVN 
Cable: Fairhaven. Bradford 


City Printers 
for Sale 

Lltho and Letterpress Printer* for 
sale with bookbinding -action and 
own camera room. Turnover in excess 
of £400.000 with pros* profits of 
£40.000. Very good City connections. 
Otters only In excess of t^ao.ooo will- 
be considered. I Price will Include 
stocks and wo rk I n progress.) 

Wrtte So* G.77T4. Financial Times, 
10. Camion Street. ?C4P 4BY. 


FOR SALE 

PROFITABLE PRECISION 
ENGINEERING COMPANY 

Located SE London with some' 
export. Suit practical engineer. Own 
product and sub contract work. 
Price appro x. £20 .000. 

Write Boa (37772, Financial Times 
10 Cannon Street. EC4P 4BY 


EXCLUSIVE LONDON HEALTH CUM fer 
sale: Principals please write Box G.7754, 
Financial Timas. lO. Cannon Street! 


Financial Timas, to, Cannon 
EC4P 4 BY. 


FM SALE — Midlands based Presswerte 
gomMayi-.TinTeivo- £2.75 nv. write 
Box G.7749. Financial Times. 10, 
Cannon Street. EC4P «BY. 

SMALL CIVIL ENGINEERING Company. 
Direct B. Sob-contract work in prop-esa. 
Annual Turnover approx. £:, minion. 
Write Box G.7776. Finurla) Ttoea, 
■Ifl, Cannon Street. EC4P MY. 


HOTELS & LICENSED PREMISES 



MEDWAY TOWNS 

SUBSTANTIAL FULLY UCENSB) PUBUC HOUSE 


With valuable bits of 3.1 Acres 
Idwfly ouhod for future development 
-THS CENTRAL HOTEL 
-GILLINGHAM, KENT 
To Let on 65 years Lease — futty - 
tied to Courage (Eastern) Ltd. for 
. . Been. Wines. & Spirits 

Offers invited on basis of Premium 
far Lei so or outright Sale of 
Freehold interest 


Far further detail t cont»Ct . SOLE AGENT'S.' 

Chartered Surveyors 
18 Bloomsbury Squire 
London WC1A 2NS 
TetephoaK 01-636 8995 


a . :■ 


:v .• ‘\ro..w» ' 


FLEURETS , 




APPOINTMENTS 


General manager of 
Lucas Aerospace 


COMPANY NOTICES^ - . 


Dr Alan K. Watkios has been 
appointed to succeed Hr James 
Blyth as general manager of 
LUCAS AEROSPACE. Dr ‘Wat- 
kins Joined Lucas in 1962. He 
was general manager of the 
electrical division. Mr Blyth was 
seconded last year to the Minis- 
try of Defence as head of defence . 
sales. 

* 

Mr James Mattinson has' been 
appointed managing director of 
the Burnley Metal craft division 
d£ CUSTOM STEEL. 

* 

CAPITAL AND COUNTIES 
hag appointed Mr D. Gordon and 
Mr ML Rapp as directors. Mr 
E. Pavitt bas resigned from the 
board. Mr Gordon is chairman 
of Liberty Life Association of 
Africa and Mr Rapp is a director 
of that company and managing 
director of Rapp and Maister 
Real Estate Company. 

★ 

The ROYAL WARRANT 
HOLDERS ASSOCIATION - has 
elected as president: Mr Peter 
Smith, chairman of Securicor 
Group; vice-president: Mr Victor 
Watson, oHairman of John 
Waddington; and hon treasurer: 
Mr Edward Rayoe, chairman and 
managing director of H. and M. 
Rayne. 

■k 

GLASGOW SALVAGE CORPS 
has appointed Mr G. . R. M. 
Godfrey (Pearl Assurance) chair- 
man for a 'second term of office 
and Mr A^ F. Hardy (Phoenix 
Assurance) as deputy chairman. 

★ 

' HALLITE • SEALS ' has 
appointed Mr Jon L. Helfet as 
technical director; Mr Victor L. 
Clark a$ production director; and 
Mr Nieholson J. Hall as financial 
director. 

rAr 

Mr Lyndon Bolton has been 
appointed a director of the 
GENERAL ACCIDENT FIRE 
AND LIFE • ASSURANCE 
CORP. He is at present a 
director and joint manager of 
the Alliance Trust and the 
Second Alliance Trust of Dundee. 
He is also chairman of the 
Tayside and Central Scotland 
Trustee Savings Bank, a member 
of the Trustee Savings Bank 
group board and a director of 
United Dominions Trust (Hold- 
ings). ^ 

The -managing director -of 
Moccomat UK. Mr Robert de la 
Bije, has been appointed vice- 
president- and a member of the 
management team of MOCCO- 
MAT INTERNATIONAL. He will 
continue to be responsible for 
Moccomat UK. but as chief 
executive. 

* 

Mr Les Masters, previously 
sales manager for INTERCOBRA, 
has been promoted to lie board 
as sales director. 


Mr A. W. “Ron’* Cook ha s been 
appointed chairman of WESTER- 
HAM PRESS. For the past year 
he * has been a nob-exeentwe 
director of the company. 

■ ■ ■ * 
r Mr Rick Grossman has been 
app oi nted managing director .of 
PLUMB CONTRACTS. • 

GULLEY SLATER ROE bas 
appointed Mr Ric Matthews as 
creative director^ ‘ s .. 

Mr David P. J. Basham and 
Mr Khoderick Martin Swire have 
been appointed directors of 
GT MANAGEMENT (UK). 

■k ■ . 

Mr Gerald K. Raqnet has been 
made assistant to the m an a gi n g 
director f or -exp loration- and pro- 
ducing of TEXACO. Mr Raquet 
was appointed general manager, 
exploration and producing for 
Texaco Europe at Harrison. 

•k 

Lord Netherthoipe, a non- 
executive director ' of BAB- 
COCK INTERNATIONAL, has 
resigned from the board. 

★ 

THORN EMI DIECASTlNGS, 
formerly Northern Die c a sting , 
has appointed Mr R. B. M. Bt&sei 
manag ing director. He succeeds 
Mr R. Arden who has retired. 
Thorn EMI Diecastings is part 
of the general engineering divi- 
sion — one of the four business 
operations forming the engineer- 
ing group -of Thorn ESC.- - . 

•k , 

Mr Charles Sinclair, deputy 
nhalrnym of. WILLIAM ' SIN- 
CLAIR HOLDINGS, has resigned 
from the board. 

•k 

Mr Graham Price has teen 
appointed a director of TH OS. W. 
WARD (RAW MATERIALS), 
Sheffield, a member company of 
Rio Tinto-Zinc Corporation. He 
was area manager — north west. 
dr 

Mr Ian Wilson, former market- 
ing director of Standard Motorists 
Centres, has become managing 
director of . newly-formed 
MOBILITY INTERNATIONAL, a 
Gowring Group company. 

Mr R. M. L. Webb has retired 
from the board of TOOTAL due 
to pressure of his other commit- 
ments, in particular as a director 
of Morgan Grenfell and Co„ 
which continues as Tootal’s mer- 
chant banking adviser. • 

Mr John G. SL Hart has joined 
the board of DANIEL C GRIF- 
FITH AND CO. as a non -execu- 
tive director. • 

dr 

Mr A. F. Bnrdett, a general 
manager, will retire at the 
ann - rtai meeting ou April 19 of' 
COMMERCIAL UNION ASSUR- 
ANCE. • ; 



' KOMATSU FORKLIFT CO, . 

- LTD. (CDRs) 

The Beard of " Dlreetnr* at Xra n eteB 

Forklift Co.. Ltd. bae 

•hareboldera. who wUI be refllfteraflm 

Se-teMsof tiwr Company March 

31stT^3982 (Tokyo 

entitled to racehre » 

trunnion of new shara*. CoosMuefro » 

the mrCwilgnec! dadpnJttd 

No. 14 of the CDB» ter t«a* ourecn* 

mssstim. - 


FINANCIAL TIMES 

PUBLISHED IN LONDON & FRANKFURT 

iwict: fbe Bradil Ttaee UteBri. facto Hw 10 Rre et, fgW. 

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hamt 7598 357. 







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■hire iirr^tel^ifciliJilPiiin 


A SUBSIDIARY 
THAT DOESN’T FIT? 


A Group ‘of professional maragers/investors Based- m Gentva, . , 
Switzerland, has purchased over the years a' number' of sub- 
sidiaries of large companies which no longer fit into their 
corporate strategy or 1 where political or social issues nave 
become a burden. , ’ 

This Group would be interested to hear of any potential 
acquisitions.* .. 

Please reply in- confidence to: .• . 


P 

I Pfeat- 


Mr C. G. Snesrth 

Peat, Marwick. Mitchell ACo. 

1 Puddle Dock. 

London EC4Y3PD 


Pfcat,Marwick,MitcheE&Ca 


Acquisition sought . 

PRINTING 

UK. printing group wishes to 
diversify activities by acquir- 
ing. small/medlam companies 
operating m specialised 
activities, i«. lotteries, paper: 
conversion, advertising etc . ‘ 
Reply la confidence to: 

Box FT/731. 9t JaioM's Hooaa - 
4/7 Red Lion Court 
Heat Street. London EC4A 3EB 



PUBLIC COMPANY 

ytrm cash available 

wishes to porchase outright companies which are 
prpfitabie-.or have a strong asset base. If dynamic 
present management retained. Funds . far 
expansion. Principals only. . - ' ~ f 

Rkply io Finance Director, Box G7767,- Financial Times 
• • \ . 10, Cannon Street, EC4P 4BY 1 



. AQUISITION SOUGHT 

UK.: based group. wishes to acquire ali of majority holding of 
manofactaring * ihd/or distribution company with - established 
product range;. Qutlets ideally should fndode hardware, chemist 
and multiples. Export potential desirable. Turnover £500^00 to 
£2^500,000, ;• • • ■■ 

■ - w ' Principals only ptaase' write to Box G77B3 4 

-• W - Flnan&el Thher, 10 Cannon Stmt. EC4P 4BY . ’’ 


PETFOOD 


; \ ' T ’>ETFOOD^CdMPANr REOUIRro WTTN PREMISES 
> if.- ENGLAND .. 

' i .. PfOVid * d “ tois Taking mpsneion i 

pr'mcrpals otify. in strict confidence to- 
£*%*£*?** G778 ^ ian ^f Time*. TO Carmen street. EC4f>_ W 


WANTED 

' We seek to acquire 
CONTRACT HIRE 
_ COMPANIES- . 

-currendy operating car and van 
fleets in excess of 100 unit*. 

•- Please write iri the strictest . 

confidence to: 

" The Managbw biractor 
COVV1E CONTRACT-HIRE LTD 
... Hylton Road, - Sondetlond 
Tel: 0783 44122 


LEASING 

PORTFOLIOS 

Leasing subsidiary of a public com- 
pany seeks expansion. We are 
interested in acquiring les sing com-, 
panics or portfolio* wfth - prime' 
lessees or suitable guarantee, end' 
with a short repayment schedule. 
Capital allowance* not. essential. 
Principal* only write to: - . 

Box S7779, Financial Timas 
. 10 Cannon Street, BZCP igr '- 


: small company Wants. 

MOTOR/ENGINEERING *- 

. Ws serf or a - private - riJeinr seeking 
to purchase a small company In 
the. motor or mechanical engineer- 
ing field. An outright purchase rs 
envisaged although s majority stake 
.would ■ be considered. Location 

.North- West, 

Write Box <3)771. Fiijahdel-Timer ' 
10 Cannon Saver. EC4P 4BY ■ 


PLANT HIRE; 

Company located within SO milts 
of London required by substantial 
private contracting group. Up- 
co £1 m cash available . ' ^ 
Write Box G77S6,. Financial Times' 
TO Cannon Street,. BC4P esy ’■ 


CONTRACT 
MANIIFACTlllll|IG/PA W 

Cash available for complete or 
partial purchase of business having 
existing custom era and spare 
capacity. Should have mixing end 
poselbly fiflirtg/peckagins ferifitles 
and room, .for expaneion. 

For fur ther in formation write to; 
Box G77B9, Financial Times 
TO Cannon Street, EC4P 4 BY 


lllfe I. 


tQ.VQ0R.suctxs4ia 


!j*=4£E~. . 

Eu&li 



I 


Small lively managei 
training company 
several. . . opportun 
here' and ' abroad 
explore ‘ and - exp 
Se^cs partner, to.' co 
hute ieqtuty capital" 
^^ ?»ssistance.‘ 
Wrfte Box F302'< 
■ >' T vines 

^ Cannon Strce 
' V : EC4P 4BY 


DALLAS DALLAS 


■ ^J^ofeihity to .purchase 
iUi'lB.aoaged real estate in 
.Daite, Texas, USA 
r* tfti&ietojim id m mimon 

NORTH- AMER/CAN REALTY 

WYESTACNT CORPORATION 




















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Financial Times Tuesday* March 9 1982 


FINANCIAL TIMES SURVEY 

Tuesday, March 9 1982 


a 


New Airliners 


Bright future in 
longer term 


SSI 


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,■ *■« 


CONTENTS^ 


funding; Hew the money is found 


The Dominating the world scene 

Europe: Pitching into battles 


m 

IV 


BY MICHAEL DONNE 


ALTHOUGH THE current eco- 
nomic recession, has depressed 
world air travel and substan- 
tially eroded airlines* finances, 
thus reducing in turn the inflow 
of new orders for airliners, the 
longer-term future remains 
bright 

Last year, the World’s major 
civil aMlner manufacturers 
(Airbus Industrie, Boeing. 
British Aerospace, Fokker- of 
Holland, Lockheed and McDon- 
nell Douglas) collectively 
logged orders and options for 
350 new jet airliners, worth 
about $I2bn (£6.45bn). This 
was well down on the 522 new 
jets, worth about $13bn, ordered 
in 1980, which in turn was well 
below the 751 new aircraft, 
worth about $20bn, logged in 
1979. 

This progressive decline in 
orders over the past two years 
reflects the decline in airline 
earnings, especially in the U.S. 
and Western Europe, as a result 
of the recession. And continu- 
ally rising costs, with fuel 
alone having soared in recent 
years. Soane hopes of stabilisa- 
tion only now emerging. 


Significant 


Air travel oh the scheduled 
airlines last year, as measured 
by the International Civil 
Aviation Organisation, declined 
for the second year in. succes- 
sion, by about 2.5 per cent, to 
728m passengers (it was' at its 
post-war peak of 754m pas- 
sengers in 1979), and few 
observers believe there will 
be any early significant im- 
provement 

’At best, there may be some 
signs of an upturn in world air 
travel — again reflecting im- 


proving world economic con- 
ditions — by the end of this 
year, perhaps strengthening in 
1983. But most airlines do not 
expect to see a significant 
return to profits until 1984, and 
not until then is there 
expected to be any substantial 
rise in the volume of new equip- 
ment orders, although inevit- 
ably some orders are bound to 
be. placed in the meantime if 
only to replace ageing fleets. 

The airlines' difficulties and 
their effects on the manufac- 
turers have been highlighted 
in recent weeks by .the decision 
of American Airlines- to cancel 
an order for 15 of the new 
Boeing 757s and the option for 
a similar number, because of 
"inadequate profits" and the 
discouraging outlook in the 
US. airline industry. • 

Why, then, are the world’s 
major aircraft builders so 
confident of a brighter long- 
term outlook that they are cur- 
rently spending several billion 
dollars (and contemplating 
spending several billion more) 
to develop a wide range of new 
airliners? 

There are several reasons for 
their confidence. Most of them 
believe that the current reces- 
sion will not last for ever, and 
that by the mid-1980s it will 
either have faded or be on the 
way out, and that air travel 
will again be moving upwards 
strongly. This, in turn, wiH 
generate a demand, for new 
equipment to cope with the 
growth in traffic variously esti- 
mated at between 5 and 7 per 
cent a year. 

Most aviation organisations, 
including the International Air 
Transport Association (repre- 
• seating over 100 of the world’s 
major scheduled airlines), as 




■' 

J • : -. w.--. 
fr ■ .y;-.':,.V f'.v • 


T5D-H9ters: A new market emerging 


IV 


Engines; Rivalry i* becoming fiercer 


Development; The *<arch for fuel «avinp 
Commuter aircraft: A but stop service 


VI 


VI 


f ! \V. < i ■ 

■ V&r&WS&t* ■■ +:L 


• If 


Thi* surrey is written mainly by 

Aerospace Correspondent 


Michael Donne, 






■’■.••V/'riMs. 


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• The neiP Bochip 767 
undergoing sfeep take-off trials 
as part oj the flight -test 
programme. The aircraft w wow 
well info the programme, which 

is aimed at the aicard oj an 

airworthiness ccrfijicofc in 
late summer. Deliveries to 
airlines, including United 
Airlines, American Airlines 
and Delta, arc due to begin by 
early autumn. 




At a time of recession among the world’s airlines, the major aircraft 
manufacturers are spending several billion dollars in preparing for an 
anticipated demand for about 6,000 new jet and turbo-prop aircraft 

up to 1992, worth more than $160bn 


well as the aircraft manufac- 
turers, believe that in the long 
term, air passenger travel 
worldwide' will expand through 
the 1980s and beyond. Their 
forecasts- vary between 5 per 
cent growth annually up to 1990 
(the IATA) and as high as 
82 per cent a year (Boeing), 
with the average being about 
5 to 6 per cent 
Even at that level, the 1981 
total of 728m passengers on 
worldwide scheduled services 
will have nearly doubled to 
more than 1,200m by the early 
1990s, creating a substantial 
demand for new aircraft This 


figure excludes the growth in 
non-scheduled services, includ- 
ing charters, which are not 
measured in the same way as 
scheduled operations, but are 
known, to be substantial, and 
are likely to expand as fast as 
the scheduled services. 


Second, by the mid-1980s, a 
very large proportion of the 
■world's total jet airliner fleet 
will be ageing rapidly and re- 
quire replacement Boeing, the 
world’s biggest jet airliner 
manufacturer, estimates that 
out of the world's total jet fleet 
in service at the end of 1981 
of about 6,000 aircraft about 


500 were between 17 and 22 
years old. at least another 1,600 
were between 13 and 16 years 
old, and another 1,200 were be- 
tween nine and 12 years, old. 

At the same time, many of 
those aircraft increasingly 
will be uneconomic to fly. 

Although crude oil prices are 
now falli ng, it will take some 
time before these can be 
reflected in airlines' costs, and 
even so high fuel bills will 
remain a major problem for the 
future. Fuel, which accounted 
for only 15 per cent- of the 
major airlines’ operating costs 


in 1970 (and even less than 
that when many of the current 
jet airliners now in service 
were first .introduced in the 
early to mid-1960s) now ac- 
counts for 27 per cent of those 
costs on average, and is expec- 
ted to account for about 35 per 
cent by 1990. 

Yet another factor is the in- 
creasingly stringent noise 
regulations imposed by govern- 
ments on airliners at many 
major airports. New and even 
tougher noise regulations are 
due to become effective in many 
countries, especially the U.S. 
and Western Europe, in the 
mid-1980s, which will make the 


older generation of jet airliners 
even less attractive to operate. 

The cumulative effect of ail 
these factors— increasing age, 
rising operating costs; and more 
stringent noise regulations, 
coupled with an improvement ui 
overall economic conditions— is 
likely to be an improving 
demand for jet airiiners from 
about the mid-1980s onwards. 

Boedng, whose position as the 
world’s biggest jet builder 
makes its forecasts particularly 
significant to the airline indus- 
try, estimates that between now 
and 1992, the volume of avail- 
able seat-miles provided by the 
world's airlines will rise from 
l^OObu to l^OObn. This, in 
Boeing’s view, will generate a 
market worth about $l26bn 
(about £68ho) for new jet air- 
liners of all kinds throughout 
the Western world (its forecasts 


do not incl/ude the Soviet Union, 
which meets its own require- 
ments, but do include some 
element of procurement from 
the West by China). 

CONTINUED ON NEXT PAGE 


Boeing suggests that of this, 
S126bn.* about S79bn (£42.7bn) , 
will be fur aircraft to meet 
traffic arowth, the other S47bn 
<f2n.3l.iu> hems for aircraft to 
cover the replacement of exist- 
ing ageing fleets. 

If in addition account is taken 
nf l he $25A bn i£13.721m) of 
orders for over 1,000 new Jets 
held bv tin? manufacturers at 
the end or 19SI. for delivery, 
over the next feu’ years t includ- 
ing 567 jets by Boehm ulnne). '• 
the estimated cumulative total 
of jet airliner sales through to 
1992 is $151 Abn tin constant 
19S2 dollars), or more than* 
£ 81 bn. 

This will be spent ot about. 
5.UOO *' first-lino " jet airiiners; 
in all, including about 4,th)0 air- 1 
craft vet in be ordered and the f 
l, (MU) orders .still outstanding.' 
mostly for the scheduled ser- 
vices of the major international 
and domestic airlines. 

In addition, liowevcr. there is 
likely to be another big market 
among the smaller "regional" 
and “commuter" airlines, 
whose development in recent 
vears has been rapid. This area 
of world air transport develop- 
ment has been less affected by' 
the recession, and is expected 
to grow strongly in the mid- to- 
late 19S0s. generating its own 
demand. 

This will be for smaller types • 
of airliners (that is, seating 100 _ 
passengers a time and below) 
not accounted for in the Boeing 
forecasts. 

Estimates of this market are 
difficult to get. but the score or 
so manufacturers involved 


- f 


v. - _ .«■' 



The new Fokker F28. 


The fuel-efficient jet 


for growing 
short-haul operations, 


The only modem fanjet of its size specifically designee to expand your system profitably in the 80’s 

Short-haul operators all over the world face the 
continuing challenge of expanding in the face of 
rapidly increasing fuel costs. And a growing number 
have solved the problem with the new Fokker F28. 


Fast turn-around. The F28 has a dispatch reli- 
ability record of 99%. Turn-around time carr be as 
low as 10 minutes -thanks to buiit-in airstairs, auxil- 


No other aircraft in its class even comes dose to 
matching the F28 in terms of fuel efficiency and 
operating costs. Over a stage length of 250 nautical 
miles, the F28’s two Rolls-Royce RBI 83 engines 
bum 35% less fuel than the nearest competitor in 
operation. Combined with lower costs in main- 
tenance, crew, landing and navigation charges, the 
.total operating costs of the F28 are nearly 40% less. 

. ... -n fwn h irhnnmnc 



Proven aircraft. The F28 is a proven high-cyde 
aircraft, rugged enough to make 20 or more move- 
ments a day. Its outstanding structural integrity and 
dependability have resulted in an extension of its 
approved service life from 60,000 to 90,000 flight 
cydes. 


replace turboprop air- 
cr^tonlowdensity, 
short-haul 
routes. It’s the 
logical choice 
for expanding 
short-haul 
operations. Many 
airlines fly the F28 
on stages averaging 30 minutes, or even Iks. Aid 
its low-noise foot print, which enables the F28 to 
operate from city-center airports, has been further 
improved with the introduction of the 10-lobe 
internal mixer. 




Fokker B .V., 

P.O. Box 7600. 

1117 ZJ Schiphol. Netherlands 
Phone: #31 20 5449111 
Telex; 11526 


Fokker Aircraft U.S A, Inc. 

2361 Jefferson Davis Highway 
Arlington. Virginia 22202. U.S. A. 
Phone:(703)979-6400 
Telex: 899462 


FokKen 




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NEW AIRLINERS II 


. Financial Times Tuesday March 9 19S2 


>a ig f 



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term 


CONTINUED FROM PREVIOUS PAGE 


i inchr-ling do ITs-.iltentl Canada. 
Fr.’V.Taor of Brazil, Saab of 
if;-. cden. Fairchild of the U.-S., 
Aerospatiale of France. Aeri- 
l.-.lia of Italy, and British Aoru- 
.•-nai'c and Short Brothers of the 
UK) yonerslly believe that it 
roulj amount Jo a? many as 
3 ,|>CH aircraft through the next 
decade (mostly litrba-propeller 
types rather than jets i worth 
about $nhn to Slbbn including 
.spares, and pns.-ibly consider- 
ably mere. 


Rapid 


These aircraft n»»t only wiil b« 
rerjuired in jncot tin.- entwine 
demand for " feeder-liner *' ser- 
vices in the major manorial 
areas of thu world, but also to 
link communities in the Third 
World, where air transport is 


srill comparatively in its early 
stages of development and 
where growth in the years ahead 
is likely 10 he even more rapid 
than in the more highly- 
developed areas. 

In total, therefore, it seems 
likely that through the next 
decade, a world-wide market 
worth more than S160bn (over 
£Stibn> for mure than 6.000 new 
aircraft (about 5.000 jets and 
3 .000 turbo-props j will emerge. 
Business and executive aircraft, 
for which there is also likely to 
be a big marker, are outside 
the scope of this survey. Of 
rhe $160bn, about one-rhird will 
ho spent on airframes, about 
one-third on engines, and one- 
third on equipment of alt kinds. 

The range of new airliner 
designs now either already 


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under development or under 
consideration Ls very wide 
Every major jet airliner manu 
faclurer is busy preparing for 
the future, 

Airbus Industrie has rolled 
out its new 200-seat version of 
the A-300 Airbus, the twin' 
engined A-310, and is working 
On the design of a smaller 150- 
sealer, the A-320. 

Boeing has already flown its 
new twin-engined short-to- 
medium range rival to the 
A-300. the 767, as well ax its 
rival to ihc A-310. the 757. Boe- 
ing is also developing a new 
version of its highly successful 
small twin-engined 737, the 
Scries 300, and has plans for a 
number of derivatives of these, 
as well as for its big. long- 
range 747 Jumbo. Boeing is 
also contemplating a new 150- 
sea ter. under the overall desig- 
nation “7 Dash 7." 

British Aerospace is involved 
across a wide spectrum of 
designs, from its 20 per cent 
stake in Airbus Industrie’s 
A-300 and A-310 Airbuses, and 
a possible stake in the new 
A-320, through Its BAe 146 four- 
engined regional airliner, to its 
smaller Jetstream 31 and BAe 
748 commuter airliners. 

Lockheed has announced that 
it is pulling out of the TriStar 
tri-jet market by 1984, so that 
while the TriStar itself will be 
flying for many years to come, 
that company's' involvement in 
commercial airliner manufacture 
will now diminish rapidly. 

McDonnell Douglas is heavily- 
engaged both on its short-to- 
medium range DC-9 Series 80 
twin-engined jet airliner, and 
the bigger tri-jet DCiO. for 
which a number of derivatives 
are planned. 

Fokker of Holland has been 
highly successful with its F-27 
turbo-prop transport and its 
F-28 Fellowship jet airliner 
(both of which are still in 
production). 

Although McDonnell Douglas 
and Fokker have dissolved their 
partnership on a projected 150- 
sea ter airliner, each is io con- 
tinue its studies independently. 

The sales battles among 
these manufacturers for shares 
in the big markets that lie 
ahead are likely to be fierce. 
This will be especially the case 
between Airbus Industrie, the 
European consortium building 
the A-300 and A-310 Airbuses, 
and Boeing, whose 767 and 757 
are direct competitors with 
those aircraft. 

Much of the future remains 
cloudy because of the current 
recession, hut there appears 
to he little doubt among the 
world's aircraft manufacturers 
ihat air travel, although de- 
pressed. cannot be kept down 
Tor ever. It is this longer-term 
confidence that is encouraging 
i hem to invest so heavily in 
new programmes. 


Greater caution over financing 


*' YOU CAN SAY that with 
hindsight we shouldn't have 
touched it.” The banker who 
uttered these words is a 
member of the 13-bank syndi- 
cate led hy Midland _ Bank 

which provided Laker -Airways 
with $13 lm of 10-year finance 
to help purchase three A-300 
Airbuses. 

The Laker Airbus loan proved 
to bp ■ a banker’s nightmare 
when the airline collapsed early 
last month. But the Laker 
disaster has not deterred inter- 
national bankers from • forging 
ahead with new jumbo packages 
for the world's state-owned and 
independent airlines. 

Bank of ' -America and 
National Westminster Bank are 
even now at work on a $165m 
10-year loan for British Cale- 
donian. the major surviving UK 
independent long-haul carrier. 
The object of the exercise is 
the purchase of three A-310 
Airbuses and the loan package 
probably will contain some 
similarities to Laker's deal. 

The UK Government is ex- 
pected to provide interest rate 
support and the manufacturer 
— Toulouse-based Airbus In- 
dustrie — is said to be offering 
" first-loss guarantees," a pro- 
portion of the potential losses, 
to shelter banks from some of 
the risks of aircraft financing. 

Aircraft financing can be a 
risky business, but more often 
than not it is so heavily under- 
written by governments and 
others that it becomes an 
exercise in collective financial 
responsibility. 

The cash required to fund the 
purchase of new aircraft over 
the next ten years — an 
estimated $160bn — wiil have 
to be generated from the air- 
lines’ internal resources, from 
government guarantees and 
grants and from borrowings on 
the international capital mar- 
kets. While aircraft financing 
remains attractive business for 
many bankers, the current prob- 
lems faced hy the airline in- 
dustry are inducing a new sense 
of caution. 

To fund the growth of thp 
world's airlines over the next 
decade will be a tall order, but 
a number of bankers are opti- 
mistic nonetheless that the 
order will be filled. 

Mr Bob Wyatt. Midland 
Bank's assistant general mana- 
ger for aerospace finance (and 
the man who helped engineer 
the Laker Airbus deal), reckons 
that between 55 and 60 per cent 
of new aircraft equipment will 
be bought by non-North Ameri- 
can airlines over the next 
decade. 

He secs dose to two-thirds of 
ihe financing being done 



Grounded Laker DC-lOs : it will be a long time before 
tive dream that crashed is forgotten 


through export credits and 
much of the remainder through 
Eurodollar loan top-ups. 

The export credits are a func- 
tion of the heavy involvement 
of governments in airlines 
around the world. Airlines are 
a major symbol of national pres- 
tige, a vital element of any de- 
veloping country's national 
persona, like a steel industry or 
a seat at the United Nations. 

Nor is it 5ust in developing 
countries that airlines are 
heavily subsidised. A number 
of Europe's state airlines pro- 
vide examples of how large 
amounts of government money- 
can be put for prestige pur- 
poses into organisations which 
are making losses. 

These include Britain's state 
airline. BA. and the national 
airlines of Belgium and Italy. 

And yet, says Wyatt, the 
money will probably be there. 
" My experience of aircraft 
finance over the last three years 


Is that airlines can get a more 
competitive deal than, sovereign 
borrowers themselves," hfc 
comments. 

Not only do aircraft deals 
create prestige for governments 
and bankers, but there are also 
a number of traditional rela- 
tionships between banks and air- 
craft manufacturers. Boeing, 
Lockheed, McDonnell Douglas 
and Airbus Industrie all have 
their particular links with 
banks, assisting in the selling 
of equipment and its financing. 

Airbus Industrie, the Euro- 
pean consortium in which 
British Aerospace has a 20 per 
cent stake, has designated cer- 
tain banks as country agents. In 
the UK it is Midland Bank, 
which formed its aircraft finance 
department only three years 
ago. In West Germany- it is 
Dresdner Bank and in France 
it is Credit Lyonnais. 

How might a typical aircraft 
financing deal be broken down?- 



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Singapore Airlines, for example, 
has just ordered a number of 
Boeing 747s and Airbuses in a 
package which will cost Sl.fibn. 
Delivery is scheduled for the 
1983-S5 period on most of the 
aircraft. 

Of the $1.6bn, $750m is ex- 
pected to come from the airline 
itself and a further $S50m in 
loans. Of the loans, more than 
$500m will be in the form of 
export credits while the 
remainder will have to come 
from international bank 
syndicates. 

A key problem in aircraft 
finance, however, is the matu- 
rity of the loans. In the Euro- 
markets, a major, source of 
finance, it is uncommon to see 
credits of more than 10 years' 
maturity. There are many in 
the hanking community who 
feel a more realistic period for 
aircraft finance would be 15 
years. 

The average life of many air- 
craft is between 10 and 2(1 
years. Aircraft are major 
capital equipment and some 
bankers conclude that airlines 
will find it difficult to pay back 
a huge aircraft debt in just 10 
years. 

‘ In the North American 
market a large part of aircraft 
financing is done through equip- 
ment trust financing. ’ This is 
a type of mortgage in which a 
specially established trust owns 
the equipment Initially and 
writes down the loan over time. 

Other more orthodox forms of 
leasing arc also widely used as 
are U.S. bank financing. For 
small operations there are even 


special leases such as the, 1 
“ German dentist lease " where- f 
-by a group of small Investors 
combine to purchase and lease 
an aircraft as a tax write-off. 

One of ti\e less nvthodox 
devices used hy hanks recently . 
has been the " double-dip " 
lease. The way " double-dip " 
financing works is that a UK 
hank purchases an aircraft and 
then leases it lo a U.S. airline. 
The airline pays for the lease, 
but under certain tax codes it 
also takes full capital allowances 
as "owner" of I ho aircraft. 
Meanwhile, in the UK, the 
owner-bank also takes full 
capital allowance. 

It is not known how many 
aircraft deals have been done 
in the past year under this 
method, hut the total volume 
is probably below Slbn. Double- 
dipping has not been restricted 
to the airline business, but it 
has assumed a particularly in- 
novative form among aircraft 
bankers. 

Innovation in banking can be 
a profitable tool: in the inter- 
national capital markets new 
devices are being conceived 
constantly to attract investors 
and ensure successful borrow- 
ings. 

But some of the. host bank- 
ing br ains in Europe found that 
no degree of innovation would 
help them to put back together 
■the Humply Dumply ruins of 
Laker Airways when it came 
crashing off the walk 

At its demise Laker had 
S421nj of long-term doller 
debt plus a £9m overdraft from 
the Midland Bank's wholly- 
owned subsidiary, the Clyesdale 
Bank. Its bank creditors- in- 
cluded a consortium led by 
Export-Import Bank of Wash- 
ington. the Midland-led syndi- 
cate and a Mitsui-led Japanese 
syndicate; 

Its ratio of borrowings to 
equity base stood at seven to 
one six months before the crash. 
At the end its liabilities out- 
stripped assets by more than 
£20 m. 

Laker Airways was built on 
a dream.- but the dream was 
destroyed with such anguish 
that it will be a long time before 
it is forgotten. Nonetheless, the 
sight of British Caledonian 
picking up the Laker pieces and 
expanding its own business in 
the wake of the collapse has 
encouraged aircraft finance 
bankers. 

It will be interesting to see 
haw many hankers and airlines 
have digested the cautionary 
tale of Laker Airways as they 
carry out their expansion plans 
over the next decade. 

Alan Friedman 


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Between now and the year 2000, some 
three and a half thousand new aircraft will be 
needed to replace ageing and outmoded 
single aisle aircraft in the 120-1 80 seat 
category. Which is why many airlines are now 
looking at intermediate derivatives which offer 
apparently attractive benefits in terms of fuel 
bum and seat-mile costs. 


But although intermediate derivatives 
are good ‘stop-gap’ measures, they are still 
basically designed around 1?60s airframe 
technology. Now. new technologies have 
been developed which permit the evolution 
of a new generation of single aisle aircraft 
bringing dramatic improvements in operating 
efficiencyandccsts. 


And only Airbus Industrie is able to blend 
these advanced technologies with its unique 
experience gained in high-technology short/ 
medium range operation and design with the ‘ 
successful A300 a nd A31 0. The result; the alf 
new 1 oO-seat A320, offering the world's airlines 
levels of efficiency way beyond the reach of 
any of the intermediate derivatives. 



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19 


Financial. Times Tuesday March 9 1982 


NEW AIRLINERS m 



The l OOOtk Douglas DC-9 twin-engine airliner (above) nl “ re-eiigincd modal fitted icitti the 

UOO. Centre: The first Boeing 757 made Us maiden fizght last */ this successful a&craft 


than 

new 


U.S. makers stay dominant despite Lockheed pull-out 


THE WORLD airliner manufac- 
turing scene continues to be 
dominated by the U.S. But the 
pattern of development through 
the post-war period, in which 
three names— rBoeing, Lock- 
heed and McDonnell Douglas — 
have been pre-eminent, is now 
changing. 

Boeing remains paramount; 
with over 4,670 jets delivered 
and a backlog of another 582 
and production running at 24 
jets a month. McDonnell 
Douglas Is in second place with 
its DC-0 sbort-to-medium range 
and DC-10 medinm-to-long 
range -jet programmes. 

But Lockheed, having con- 
sistently. incurred heavy losses 
on its TriStar medium-to-long 
range jet venture, has decided 
to pull out of commercial jet 
airlin er production after 1984, 
when the current backlog of 
TriStar orders is completed. 

Lockheed’s withdrawal will 
not make things any easier for 
the European competitor, Air- 
bus Industrie, however, for both 
the other U.S. manufacturers 
are - already moving to fill the 
gap that Lockheed will leave. 

Boeing's range of aircraft is 
now so wide that it retains a 
co mmanding lead in world 
markets despite the inroads 
made on it in the short-to- 
medium range fields by Airbus 
Industrie. To date Boeing has 
no fewer than five separate jet- 
liner programmes. They include 
the 130-seat twin-engined short- 
range 737 jet; the 140^eat 727 
short-to-medium range twin- 
engined jet (production of 
which is now running down); 
the new 186-220-seat 757 short- 


to-medium range twin-engined 
jet; the bigger twin-engined 
220-240-seat 767, also for short- 
to-medium ranges; and the big, 
long-range four-engined 747 
Jumbo jet 

In addition, Boeing has 
studies under way for a large 
number of derivatives of all 
these programmes. Its great 
fund of Jet airliner design, 
development and production 
knowledge is now so large that 
it could produce a new design, 
(such as a 150-seater) within 
months and could build it in 
three years if necessary. It does 
not want to do so, however, 
because it is financially 
stretched (the new 737-300, the 
757 and 767 are collectively 
costing more than $2.5bn) and 
it is not encouraging talk of 
another new venture just yet. 
But if forced to compete in any 
new field, it will do so. 


Rival 


The 757 and 767 are entirely 
new jet airliners, intended to. 
meet the growing demand for 
short-to-medium range aircraft 
of improved fuel efficiency 
over the next 20 years, replac- 
ing many of the existing 
generation of aircraft, includ- 
ing One-Elevens, Tridents. 
Caravelles and even some of 
the earliest Boeing 737s and 
727s still in service. The 767 
is a rival for the Airbus 
Industrie A-300, while the 757 
is the direct com pe tit or to the 
Airbus A-310. Boeing’s own 
sales forecasts indicate a 
market up, to 1992. for at least 
1,100 in the broad 767/A-800 


category, with a market for 
another L350 aircraft in the 
broad 757/A-310 category. It 
believes that it can win up to 
55 per cent of these markets 
through the next decade. 

To have developed two new 
airliners over the past three 
years, with its own money, is 
a remarkable achievement even, 
for Boeing. The 767 is now well 
into its test-flight programme 
and is due for delivery to the 
airlines later this summer. To 
date, orders stand at 173 air- 
craft firm, from 17 airlines, 
with options on another 138. 

The smaller 757 made its 
successful maiden flight on 
February 19. The order booh 
stands at 121 aircraft firm from 
six airlines, with another 56 
on option. First deliveries are 
due to Eastern Airlines of the 
U.S. (which has ordered 27 
with 24 options) in December 
and to British Airways (which 
has ordered 19 with 18 on 
option) next January. 

With, the 757 Boeing believes 
it could develop a shortened 
fuselage model, the 757-50, as 
a possible contender in the 
future 150-seater airliner com- 
petition. With the 767 the de- 
velopments could include a 
stretched fuselage model to 
carry more passengers; a long- 
range model capable of dose 
to 5,000 miles range against the 
present "767*s 3,000-plus miles; 
a “combi” passenger and freight 
verson; and ah all-cargo model. 
Boeing stresses that these are 
only studies and that it will not 
undertake any such develop- 
ments until airlines place firm 
commitments. 


In the smaller 737 market, 
where the existing 737-200 is 
already the world’s best-selling 
jet, with 990 ordered so far 
and production at the rate of 10 
aircraft a month, Boeing is 
already looking ahead with the 
improved 737-300. This aircraft 
will have a new engine, the 
Franco-U.S. (Snecma-General 
Electric) CFM-56-3 of 20,000 lb 
thrust, which it is claimed will 
use 20 per cent less fuel than 
the engines in the existing 737- 
2Q0, coupled with aerodynamic 
refinements and weight reduc- 
tions from the use of new 
materials. 


Strengthened 


The 737-300 includes an 
8ft 8in fuselage stretch to 
enable It to seat 22 more 
passengers, at around 140, 
while the wing has been 
lengthened and strengthened. 
The aim has been to give the 
737-300 a 20-year life, during 
which time ir will make about 
75.000 landings. Although it 
will have the same range as 
the existing 737-200, it will use 
much less fuel, make less noise 
and cany more passengers. It 
is expected to be built alongside 
the existing 737-200, which will 
continue in production for some 
time to come. The roll-out is 
expected in March.. 1984, the 
first flight in April and delivery 
in November of that year. 

' With over 1,800 of the bigger 
727 three-engined medium-range 
jets in service, Boeing has been 
looking at ways of improving 
that aircraft also. One possi- 
bility is to re-engine the 727, 


installing two new-technology 
power-plants at the rear of the 
fuselage against the existing 
three, to give an improvement 
in fuel consumption of up to 
26 per cent over the existing 
727-200s now in service. 

Boeing has discussed this pro- 
gramme with a number of air- 
lines, but no decision to go 
ahead is expected until later 
this year. 

Some of the most dramatic 
improvements to any existing 
airliner programme, however, 
are involved in the 747 Jumbo 
jet. 

Without changing the wing or 
lengthening the fuselage, the 
famous “upper deck” of this 
largest of all commercial air- 
liners has already been extended 
by 23 ft to the rear to accommo- 
date up to 44 more passengers, 
giving the aircraft about 500 
passengers a time. This gives 
airlines an improvement of up 
to 5 per cent in the amount of 
fuel burned per seat. 


Beyond that Boeing has many 
ideas for the 747. These include 
putting on a new wing and 
stretching the fuselage, to give 
capacity for between 550 and 
700 passengers, as well as per- 
haps stretching the upper deck 
all the way to the tail, to give 
capacity for up to 800 pas- 
sengers. These will be expensive 
developments, however, and 
Boeing says it will not under- 
take any of them until it has 
firm Miriine commitments. 

Like Boeing, McDonnell 
Douglas believes that the pre- 
sent recession will be followed 


by a resurgence of a traffic and 
equipment orders. When such a 
turn-round occurs the current 
McDonnell Douglas project 
range of shon-to-medium range 
DC-9 jets and medium-to-long 
range DC-10 wide-bodied air- 
liners, together with the de- 
rivatives of both now under 
study, “should capture a sig- 
nificant share of revived and 
growing markets,” says the 
company. 

Earlier fears that the DC-10 
line might have to be closed be- 
cause of the current recession 
in air travel appear to have 
been staved off as a result of 
the U.S. Air Force’s decision to 
order another 44 KC-lOs — the 
military tanker/transport ver- 
sion of the DC-10 — subject to 
Congressional approval. This 
decision will enable McDonnell 
Douglas to keep the basic DC-10 
production line open through 
the nest two to three years, and 
enable it to continue work on 
derivatives of that aircraft to 
capture new markets in the mid 
to late 19805. 

On the DC-9 programme, total 
orders (including conditional 
orders and options) stood at 
1.115 aircraft at the end of 1981. 
of which 1,033 had been 
delivered. 


Freighter 


McDonnell Douglas has plans 
for derivatives which could 
widen the spectrum of uses for 
both types of aircraft. These 
include the long-range “Super 
DC-10,” with passenger capacity 
varying between 250 and 380, 
but averaging about 297. 


Several different versions of 
the new “Super 10” are 
envisaged, including a freighter 
model: a stretched version to 
accommodate 342 passengers; 
another variant for use from 
high-altitude airports using 
more powerful engines; and a 
shortened fuselage version for 
fewer passengers but with 
longer-range capability. 

Besides the “ Super 10 ” 
McDonnell Douglas is also 
studying possible derivatives of 
its longer-range “ inter- 
continental ” models — the 
Series 30 and Series 40 DC-lOs. 
These derivatives would offer 
added passenger capacity (up to 
about 60 more seats) through 
the use of lengthened cabins 
and more powerful engines (up 
to 59,000 lb thrust). 

With the DC-9 the company is 
also looking at derivatives, 
including the Super 80 capable 
of carrying 155 passengers and 
the Super 30 capable of carry- 
ing 112 passengers. 

The objective, as with the 
DC-10 mediumrto-long range 
improvements, would be to 
capitalise on the heavy Invest- 
ment of several billion dollars 
made to date in the short-to- 
medium range market and by 
spfnding a limited further sum 
to ensure a place for the DC-9 
in the airline fleets of the 
future. 

McDonnell Douglas believes 
that even with any future 
development of the specialised 
150-seater type aircraft 
there is still likely to be a 
market for the DC-3 derivatives 
through to the end of this 
/-pntiirv. and it sees no clash 


of interest between these 
ventures. 

Lockheed Aircraft Corpora- 
tion, the other major U.S. 
manufacturer of jet airliners, 
has found the competition in 
wide-bodiod jets much tougher 
than cither of the other two, 
and after losses of 82Bbn on 
the programme has decided to 
end production of the L-1011 
TriStar in 19S4, when the last 
of the 21 aircraft still on firm 
order has been delivered. 


It is possible that the termina- 
tion date may he extended 
beyond 1984 if the company is 
successful in convincing the 
holders or outstanding options 
on 49 aircraft that they should 
convert them to firm contracts, 
but even this will not alter the 
company's decision to cut its 
losses and set out of wide- 
bodied commercial jet airliner 
production eventually. 


The decision to end TriStar 
development and production 
will cost the company some . 
S396m which is being written f 
off in the 1931 accounts. Lock- / 


heed ’sold only five TriStars in/ 
' * *>ack-f 


1981, and the firm order back-} 
log of 21 aircraft up to 198-f 
compares with the annual pro 
duction rate of between 20 anc 
24 aircraft needed to make thj 
programme viable. i 


Lockheed will continue f 
support current TriStf 
customers — there are 220 Tj 
Stars in service— for as i 
ahead as is necessary w 
spares and other assistance,, 
will Rolls-Royce on the RB- 
engines used in that aircr 



we brought Boeing’s 767 down to earth 


\ 


We refer, of course, to the very 

first 767 flight simulator - now 
delivered and installed at Boeing s 
newflight trainingeentre in 
Seattle. 

• Good timing, you may think, 
considering the aircraft made its 


airline service. And,_for many pilots, our 

SlllitilfilOIS r > rr\tni4o tKp first OlflnHs- iirtr"'. 


CUIISIU.CI Uk 

highly successful maiden flight 

i .• ■ T* . ■ ; '■ y ' -I ' - ... =!*£ *.'■ 

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that use computers an 
instruments to gather, 
process arid-display data 
designed' to maximise their i 

operational efficiency. ' 

How have we ***- 1 
achieved all this? 


Quite . 
simply 
by 



in advanced technology flight sin 
In fact, thanks particularly to 


t simulation, 
our 



competitive airline flight simulation 
bv business. 

Right now we're working on 
25 major simulator projects 
• including B767s for TWA in the 

United States, Pacific Western 


- in Canada and ANA in Japan. 


Generated Image systems we'll be 
visually simulating special weather 
effects that will allow an even 
greater transfer of training from 
aircraft to simulator. Later this 
year, the first simulators to 
incorporate a revolutionary 
panoramic display system will 
enter service with Air Florida and 
British Airways Helicopters. 


:% Last year, in the 

rv- ;vr- • United States, under 

new Federal Aviation 




only last September. In fact, rather 
less dramatically; the simulator 

1 t :i tlirmf ill 


factory. „ , .... . 

. Currently we re building ten 

simulators for The BoeingCompany 
including those for both 757 . 

^ IPs ^eS simulators which 
will train crews to take a totally 
new generation of 


working 

hand in hand wittir 
Boeing. While 
they've been moving , 
aircraft design towards 

- — • r f we've 


Ssrf**?! legislation we 

established a 

12 month lead over 
, v ^ \‘) our competitors in 

meeting the goal 
j||& ; of 'zero flight time' 
W' simulation. 

_ iut, we're not a company 
prepared to rest on our laurels. 

With recent developments 
in our Novo view Computer 


A 



Wide-angle 

Infinity 

Display 

Equipment 


withthenu 


^ every step 

of the way" 


, - •• 


4 


1 


m 


•1 


j* 






As a member of the 
Rediffusion Group we're part of a 
world-wide organisation which 
has interests spanning computers, 
communications and electronics as 
well as, of course, the sale and 
rental of television and video 
equipment. 

~ If you would like to know more 
about our activities in flight 
simulation generally , or new aircraft 
' types in particular, -please contact our 
Public Relations department s 


4? 




REDIFFUSION 


"Vi 


m 


m 



DmyMOin] 

Crawley ■ Sussex • England 
Telephone: (0293) 28811 


— i 







The Airbus consortium is ready for further sales battles against its U.S. rivals 

Europe strengthening its position 


OVER THE past decade, Airbus of aircraft that could challenge optioned* worth an estimated larger European airliner manu- TriStars, 747 Jumbo jets, and 

Industrie, the European consor- the Boeing supremacy in other S15bn at a minimum, apart facturing organisation that will -the Boeing 757s, as well as for 

tinm building the 250-seat A-300 markets, such as the short- from the value of spares (which challenge the U-S. across the the Aveo Lycoming ALF-502H 


and the smaller 200-seat A-310 range 737, for example, or in effectively doubles the total), whole Held of commercial air- engines used in the British 


Airbuses, has risen rapidly, to the very long-haul markets, would have gone automatically liner manufacture. 

t-U .1JI 1 TAT Tnmhn fn A, TIC ,nwAmui<ut lad. I . . i ■ 1 


become 


Aerospace 146. and for the 


world's largest dominated by the 747 Jumbo, to the U.S. aerospace Industry. Another major element of the Pratt and Whitney FW-2037 


builder of wide-bodied jets after and it seems likely that for the This would have been a total European challenge that is engines for the Boeing 757. 


Elsewhere in Europe, 


Boeing. immediate future its activities loss of business to the Euro- being mounted against U.S. Elsewhere in Europe, the 

Increasingly in the future, it will continue to be concentrated pean aerospace community, and dominance in world airliner challenge to U.3. dominance in 

seems likely that the major in the short-to-medhim range a heavy drain on the dollar markets is that by British Aero- world airliner markets is being 

sales battles throughout the field. resources of the European air- space. maintained by Fokker of 


sales battles throughout the field. 


world in the short- to-medi urn Also. Airbus Industrie recog- lines and their governments. 


become nises that its best opportunities 


ace. maintained by Fokker of 

Apart from BAe's immediate Holland, which is continuing 



range markets will become nises that its best opportunities Airbus Industrie’s plans to direct 20 per cent stake in production of its 52-seat F-27 
fiercer, with the A-300 ranged for the future still lie in the develop a new 150-seater air- Airbus Industrie, representing Friendship twin-turbo-prop air- 

against the Boeing 767, and the developing world, especially craft the A-320, are discussed an investment of up to £250ra. liner, of which well over 700 

A-310 ranged against the among smaller and compare- elsewhere in survey, which gives it a big share of have been delivered, and its 

Boeing 757. Already, Airbus tively young airlines with sub- Beyond the A-320, however, the work on the A-300 and 85-seat F-28 twin-engined 

Industrie has dealt Boeing stantial growth potential Airbus Industrie has plans for A -310 (building the wings and Fellowship jetliner, of which 
some severe blows in non-U.S. through the rest of this an eV en wider ranee of aircraft also with an overall design over 174 have been delivered. 

AJOiMAinTln •«! Z|*l, : uj nAnfnm* Tt- ID in flrrr « ..... . . _ _ aAnmltfiMfiw * n C Urall QC 3 jl“ , m _ i .. 


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some severe blows in non-U.S. through 


markets, especially in the Third century. It is in this field that These include the TA (for Twin consultancy role V as well as Production of both types of air- 


The British AerospaceBAe246 fcmr-erigined feeder-ltner (above) ts vow tfmLpnjp, 
its flight trials. The latest addition to the Airbus family, the A-310 ( below 
rolled out at Toulouse in February and is date to fly soon 


World. 


Airbus Industrie has picked up Aide) 9. which will be 


Conversely, apart from its big many of its most significant stretched " version of the A-300 Sected A-320. the UK group .is 

order from Eastern Airlines orders, and it is being assidu- f _ r n)M ij nTn . r ,n n , „ nt _, _____ mounting its own challenge in 

«„c It>r rneaium-range routes carry- _ _ _j_Zt „p 


a possible stake in the pro- craft wfl-] continue for some 
jected A-320. the UK group .is time to come. 


(the biggest single Airbus cus- ously cultivated by its sales - ms nn ^ q/M4&n a variety of ways, 

toraer) Airbus Industrie has teams. g up ro aoonT P as * * 


Although Fokker has ended 
its pact with McDonnell 



been singularly unsuccessful in With 162 aircraft delivered ^ur-er^ned Girlie? ™ 

TirooTHrtor inin Hio nnlpnliallr -J.l-J +„ *OUT-enginea aiTUTier Cap* 


breaking into the potentially si far. and another 343 to be 


Prominent among these is its Douglas to develop a 150-seater 
four-engined regional airliner, airliner, the Dutch company is 


able of flying very long distances the B . Ae J 46 - w JV ch b .Tiffin to continue its studies, although 


clpal partners include Aero- tory from 3.6 aircraft a month th ic aisn dininer lor xo yeara auu uiceuia tne A-iKJU venture C3JH10T 06 

spatiale of France, British Aero- at the start of the year to 4.2 et MAr*TM« a ^«M S an investment of up to £350m, dismissed. 

space (with a 20 per cent stake). a month by December, and SJS of which about SO per cent will _ . . , . 

Deutsche Airbus and CASA of plans to continue this espan- have been incurred by 1984. 


possible 


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imdS airliner for 18 7 ears and means the A-320 venture cannot be 
hpa irmp- 331 investment of up to £350m. dismissed. 


and Belairbus of Belgium as 
associates, represents the cul- 


dietate. until peak" production illJf passengers on short-haul routes, ± ^ * e airliner field is p^ed 

of eight aircraft a month is J/JFh? it is intended to be a true “ bus- of A 1 * 115 

*10^ 4,500 nautical miles and. _»_ n w i«*. inw nnicp and Industrie, but the company has 




mination of efforts by European reached in 19S4 


governments and aerospace in- 
dustries to establish a civil air- 


airfields - r.vmmme pneines and verv low commuter airliner field m con- 


company 


working on parts for Airbuses 


craft manufacturing capabitity up to aircraft BU mber 340, and 
on this side of the Atlantic that production of a further batch 


junction with Aeritaiia of Italy 


U-S- of aircraft up to aircr^t number 


nance in world airliner matkets. 


436 will start in mid-1982. 


ujsu tfiraeitts. Lycoming engines and very low commuter airliner field m con* 

-w-w • j . fuel consumption. junction with Aeritaiia of Italy 

Decided In adifition to the 146 BAe oo. the development of the 

Since Airbus Industrie has £“ <»«■ lltW “ 

already decided in principle to 5*°°- Si survey * 


Founders 


"Hi eiui i ill UUU-IJOS. ■“San,* uvviucu iu 1 U ...... n, . . 

Orders for long-date materials concentrate its resources on the strea ™. 31 tw V 1 

executive and commuter air* 


Since its establishment in the 

late 1960s. it has succeeded be- d , eUvery ? Airbus No. 500 is 


have already been placed for A-300, A-310 and now also the 


yond the dreams of its original ]£ a !? T, J d fo . r . A P^* l 98 jj- 


n-vvu, , 1 -uiu auu nun oisu lire . 

A-320, it may be some time be- !“*“»“* ® n 
fore any commitments are made «25 1 5 t 2t. 5S1 


‘founders, and is today still 5? e ’ 5t is . hoped that the 


strengthening its position. To PT? seiT ^, r® cess i™ be 


date. Airbus Industrie has an- *. e 


nounced firm orders and options Airbus order book will have 


on either the TA-9 or TA-U and 
in any event it seems likely that 
decisions will only be taken in 
the light of airline orders for 
such ventures. These in turn 


ment of over £20m. BAe's bid 
to win a major stake in this 
expanding market The group is 
also continuing to sell its 
highly successful 40-passenger 
BAe 748 twin turbo-prop 


Finances put a brake on interest shown by airlines 


mmiiicu uim viu.ino miu uuuima r ----- -- — . ■ — - _____ Mp f*±o Twin lurDO-DruD 

^ the reression^is over and air feeder-liner, and Is progressively 


44 airlines, of which 34S are 


firm orders and 159 are options. The precise investment in the improved^ and enlarged version __ . Tr . .. 

This figure is divided further Airbus programme has never Lnf ?L J ansa t -iS of It for world markets is also 0F A^ ^ new aarlmer pro- Fokker now joiirmg AWras 'Jaopmg 


aircraft. 


Market for 150-seater emerging 


tato ^ A-3Ss (258 fi™ and ten pubUcIy^ti^ but l^ in the 

SLKfifiajai A «°* (9 ° i-medinte future. 


being planned. A decision on srsmmes now eiaer under Industrie on tile A-320 venture, partnership 


• its A-320 is likely to be up one thhtt af 
arrangements the total, or -about SlObn, 


firm and 90 options). saon, ana the break-even nuns- ‘ “ emuhasis in'” Ahrbus I^er this year. 

By comparison, Boeing has ber of ^rcraft needed is between be on three Another significant contribu- 

t>n firm orders for 173 of its ^ ' 00 * 15 not expected nroerammes which will tor to the new generation of 


$2bn. and the break-even num- 


the latter venture may be taken £fJ ek £ men L or discussed or even re-opening talks it held settled -in the -first half of this excluding spares. 


for the future, none has some tune ago with Boeing on year, so -as tio be able to press Rolls-Royce has already 

Opnontml cn muni, 4.4 awwt nnrpiMn JI sjil. -‘a jJl, _ - - ... .< v 


current programmes, which will 


generated bo much interest possible collaboration, 
among manufacturers as the In the meantime, K 


ahead with the aircraft with a with the three Japanese aero- 


488 aircraft, in the short-to* space community, and to the 


medium range market European econ< 

So far, other than the 150- is incalculable, 
sealer. Airbus Industrie has not Had it not ex: 
begun to develop other types craft already 


European economy as a whole. 


tinue to expand. commute! 

Nevertheless, the long-term discussed 
ambition of the Airbus Indus- survey, 
trie management is to widen engaged 


among manufacturers as the In the meantime, McBannefl 1986 in-eearvioe date in mind, bat engine manufacturers . ’ 

projected short-to-medium range Douglas is more cautious than it seems that tins date is Bkriy kawajima Harima Heavy In- 

150-seater, although this enthuj Airbus Industrie, suggesting to slip, mid fee t A-320 may not dustries, Kawasaki Heavy In- 

riasm is not so far reciprocated that perhaps 1987 is a ..more emerge: unfit .-1887 or perfueps dustries and Mitsubishi Heavy - 

by .the ai n a n es. __ _ _ realistic time scale, although even later. ■ Industries), to form a joint com-- 


elsewhere 


Whfle it is widely accepted also arguing that if the market AIL : contenders would pany, RoHs-Rovce and Japanese 

ac iwnorori-niy -firwr* fmnrn.vror fWa-" ui : t a. a* . -__n xi \ - “ . « r 


is also heavily <hid a market v emerging for i mprove s .dramatically the* Hke tateraatiouai collaboration Aero-Engmes. ‘ to develop an 


engaged in the engine-podding f^ 1 arr ^ ra ^,„^^ cn ^ produced on their projects. 1 All • have eotirely^new 24.000 lb enghie. 

140-seat Bo&ng i37-300 at the eariier. - been wooing the Japanese aero- the RJ-500. - 7^ 

lower end of the scale. and the Boeang is the most cautious, space mdustey in a Wd to get Work on this has been pushed 
, larger 186-seat Boeing 75 1, m<»t arguing that .1988 or even both cash - and .wbric - charity forward fast, with those emo* 
| of the airhnes »e not yet ready perhaps 1989 might he a f and' hopefully aUso ^f ambstan- panies’ private funds, and two 
'to commit themselves with more realistic tuning for the Wc aa zTntWAW L' f ** hImmJ 


Had it not existed, the 505 air- eventually the spectrum of business, producing pods for ^ zFz 

craft already ordered and activities, creating an even Rolls-Royce RB-211S for j 0 ™ 3 * ™ spate.and the 



: - ,«-• ■* . ■ > ■ 
•; ■ ••. .* **. **s^ * • ' v> - • • 

* * • ' . * 


to commit Themselves with more realistic tim i n g for the tiai vohunfrof sales-iii 4he big 
ordras. Nevertheless, most of new jet Boeing’s caution is Japanese market for tins type 
them involved" in short-to- perhaps tinged with the fact that of aircraft), -but so far no 
medium ran^e transport can see it is already spending $2.5bn decisions bam been, taken bv 
a need towards the lat» 1980s in developing three otiier new either the Japanese Government 
for an aircraft capable of cany- jetliners (the 737-300, the 757 (through the Ministry of Inter- 


far an aircraft capable of carry- 


tiai vomme- of -sales -,ni”the big demonstrator ” engines aimed 
Japanese market for tins type at proving the overall soundness 
of aircraft), but so far no of the design have been built, 
decisions b anna been taken by in Derbr and Tokyo 
other the Japanese Government Full-scale launching of the 
(through the Ministry of Inter- development of the RJ-500 with 


such an aircraft has been estk a wide range of studies, under UialnmiP 
mated ait upwards of 3,000, per- the umbrefla designation “7 wuuuguc 


baps reaching as many as L500 Dash 7,” and'* is. Hkely . tu be a . A4rt*» .. 


through to the end of the cm 
hny. 


The initial enthusiasm for craft ir needed. 


formidable competitor for the signed 41 Memorai 
others no matter when the air- standing with " 


mdi an atocr^t has been in the Boeing, in fact .fe probably in 




Australian 


. . engine has been made by an airi 
fit. ^tame manufacturer, and orders 
received from airlines. 

.. On present- reckoning this 
i could come later this year. 


aerospace- oomp«oties-for -parti- Meanwhile Rolls-Royce - and 
crpatioa -by -to ifijifr. A-KO Japanese Aero-Engines are hoJd- 





toer wmetimeago^Sfoce then itc^successftd^^boxln^W-^ ^ -^Seus. ^ 

other airbnes have slowly begun ^ject Produced bv elffier Air*’ SJce S 


fuel consumption and with other cajjed the 737-400. which would 
new techndlo^rel advances, ^ existing eti^nes' bat have a 


such as a greater use ofcom- ^ ^ng. Auotiier study tefor' Bbetog !sa3roadyw(uiting 'S!7SSbSHSSSf 
materials to reduce „ varjinn »uh wv, ™ °*S p ?™ 3a l_mariret 


m ^^fgPOW ttKm. b y ■ development costs, easetiietech' 

g». J5^ «- ?n*l«tea: -Jisal problem, 

^kjp'ns.the engiDeaDd widen 


.eS'H" i a 737-500, with boa new mgmsr wSli tb.Jap&fee'irttAeritS; : b™ teSS 

wehpit (and uras also improve nnd a new wine Yet another m . . su “ 1 talks will 


^ could be Tree- 


gars. It could "even start afresh anyi hew. anclmer programme, intends to offer 

rToo-Ffi I~24'wwi‘ rtf affl rMioeii- . n '- rc V 


gars, it cornel even start afreai any :• ^new. : anmner programme. 1 intends to rt 

Cautions wtth an enaroi, bew.deagn. O&ffiddBon of St 

But the precise date of entry ^ cases the designs being natrofiafT : moves - seenas Kkeiy is no ' coHalXHntiwT*»nLmW 

into service of such an aircraft mooted to meet .the potential’ some time during- -the coming -It fa already wirirmoimfh. 
is far from dear, even in the market are still in -theft com-; ye&r._: . - . ifevAinnnMm* *1, 


rth an entirely riew.deragn. ;Gkffica%i of aH^ftiese- inter- petition to theRJ-WKiS 
In an cases the designs being natrofiair - moves seems Kkeiy is no coHaborativeVliSISiSr 

noted Tn flip iwrf»ntiar .some, time dnnnpjTiw mninn -n _i SSTBeiDCTt. 


is far from dear, even in the market are stm tn theft cpm- 
zdriines’ own nrkids. - While paratively early stages, and no 


COX J ■ __ -'^*0 VM UIV 

-'Hre competition MSwmg-the the 25JKKrH> 


airlines' own maids. While pararrveiy eany stages, ana no ' iTre competnaon ammig-the the 25,000 & 
showing much private interest in final^ launch rommitineTite have . ^aaffne^manufactniers for -theft- to : compete- in the* 1 1 5^s e^t er 


as Delta, have su^ested that only Air France has made a cote 
such an aircraft could be needed ditiohal order for 50 A-320S, but 


by 1986, others are more tins will lapse if that 'venture 
cautious, setting, the require* is not formally launched this 


ment bade to 1988-89. 

By then, ft is argued, the 


spring. * 

Governments are also likely to 


recession which has so severely become involved, where :'$he 
eroded airline finances wifi be A-320 is concerned. Although the 
a thing of the past and world French Government has pledged- 


SHORTS WIDE-BODIED 
REGIONAL AIRLINERS 
ARE READY 
FOR THE 1980s 


air travel will be expanding . support for the A-320, neftoer js-i-r- ;• 

stron^y again, espedally in the .ti » W est ‘ . German -..nwr ~ BK 
sbort4temedhzm range markets, Govenomeirt . has . made up; its; ^ 
where the bulk of the world's “urf on support ...for itiiat; 
aft travel already occurs. project Nor have the aero- -j* t 

But whenever the aria-craft space industries - of those two- 
e m erges, it seemsr that the over- countries settled-: the- .'detaifc' flreBaecfiofl 
all market wOL ofiEer ridiTridc- of which parts of --the aircraft ' 




to A310 


all maritst wOL OfEer rich “pidc- <« wiuui t«ns w me mrcraxu ra nno rv ; A -• —«ihi 

ings for the arcraft mamtfac- they want to build, and how, for Airfoils 

furors.. Even if the conservative .much iuvestuieiJl Unv wHI -sab?; T r' , . V';.cr . : t 1 ^- ■ ■ " 

estimate of only 1,000 aSrcraft wnbe to the programme. ., ",."7 . 

fa taken, at about *30m per air* . \ ; iTOtecfr iL ,> ^jwcwridfisr trend indkstirm 

craftthe^market fa Ificely to be OptlOHS ./ . ‘ -.1.' HiroenjdmBlroSw 


spwUfisibghi 
or tit* Aviation 


fa taken, at about SSOm per air* 
craft the- market fa Ificely to be 
worth $30bn, excluding spares., 
It is not surprising, therefore, 
that most of the world's major 


Options 




British ' Aerospace has heei' 
facos&tag a number of posrible 


f . ; napending overheat 


airframe and engine manufao options with the tFK Government I 
turers are Interested in. sndi a and within Airbus 'Industrie, in- j 


prospect out wun varying «uu*ug am* poB^p».;aeveiou<'- 
grees of enthusiasm. ment of the forward fuselage t cargo bays and cnntaf n 

Of the main contenders in the and flight' deck, manufacture of. tligtdy cfficieDf low tnr 

•fTBTtie field. An4vi« Indindriv. the taH ■ imft. nuifinmy) -tiKa. pAnfirtnoi - 'TVa y '.' 


degrees' of enthusiasm. 


with varying dudJng the possible develop* 






ment. of forward 


giKweight, stainless sfcd 
c extinguishers are avail- 
ie :fdr the engine, APU 


it took the world's oldest and one of the most experienced airplane manufacturers to build wide-bodied 
generation Commuterlinere. In every aspect the Shorts 330 and 360 are designed for efficiency, and the 330 is 
already well proven in airline service having earned over seven million fare-paying passengers to date whilst 
the 36Qi)enefits greatly from its established heritage. 

they are built with simple and functional, highly reliable philosophies in mind. They are equipped with 
quiet, fuel-efficient engines. And they have the most advanced flight deck equipment to be found on a 
comparable aircraft. ? 

The 330 and 360 provide outstanding comfort and appeal for up to 30 and 36 passengers respectively. 
With these facilities, commuter passengers, and. the airline operators, have the widest choice of reliable, 
fuel efficient, wide-bodied regional airliners in the world. 


airframe field, Arrbqs Industrie the tafl - unit, continued .-pro ' 
of Western Europe is the most duction of wings, as with the’ ' 


- k^«xtin^iBhant BTM. 


enthusiastic, pushing ahead with . A-300 and A-310, or even imder-~ 
its A-320 design and. claiming taking final. assemly_of the 
that the aircraft . could- be craft in the UK from parts sent r C*g0|| 
developed in time to enter star- in by all the .other partner - systor 
vk»byl986- MdJoimieH Doogtas countries. -■ 

of file U.S. had originally .linked Depending on' which of these 

with Fokker of .. BoOand ; in posrihalities is finafly adopted. 
devfitop the joint MDF-100 the UK ootdd get a shire of the fflg 
design but this appeit w- not to . A-320 ranging up. to about 30: Bac^S 
Iot bem a very happy pffltner- . per emit fanotijec, possible . 
sbfo. ana it has been -tennmated option, of course, is hot to paa^ » 
by both, sides by. mutual: agree-, tiejpate in tiie A-326*a± all, but 
ment Each of those cornffanies, tins seems urtiik^y). ." fiat the S 
bowewr, has said tt intends. -fo ‘bffl will be heavy,- perhaps-aS 
continue with studios on a much as £400m over the -next . 


b®i reliability, are the 
»,■ : : . -safirat feature of these hkh 
technology nrbdnctii 


continue witii studios on 


potential 150-seater— the iroten- - few years, and the UK .GOV&W 
tial Towards are too great for- ment will probably^have ttefind. 
them to ignore. the bulk of this in launching auL : 

This opens the possaaiQr of, Atibus Induatrie ..1 ms . beezt 




I'R^Cpjrn&^stough, 


^^prrG^dpk^^3?45 










mrsm 




Financial Times Tuesday March 9 1982 


NEW AIRLINERS Y 


Savings in fuel consumption are becoming the yardstick for commercial success 


h linVriJ 
SPIW. 

1 Wfr 
in- 

• In 
’• Wrin 

"I'H ;.inv 
•l 'Pin** 

> -nm* 

•* ICi h'fi 

■ ■I’l IV. 1 

••• .vwj 
■ ■■n ?nr- 



builders in fierce 
for market share 



IHE . L BATTLE • among the 
vrorW's . major, aero-engine 
manufacturers £or a share in 
the big. markets of fee future 
is - already just as intense as 
that ' between the airframe 
manufacturers, and is likely to 
become even fiercer through 
the.. 1880s. . 

With about one-third of the 
total aircraft market of $150bn, 
or about $50-$90bn, likely to 
: be spent on aero-engines of all 
kinds; the rewards for the suc- 
cessful manufacturers will be 
substantial 

' The aero-engine builders are 
of especial importance . where 
the ’“new generation" airliners 
are concerned, for the engine is 
always regarded as the “pacing 
factor” in aircraft design. No 
airframe designer can begin to 
work unless be knows that an 
engine is likely 1 to be available 
. to enable his aircraft to do what 
he wants it to do. The lade of 
early availability of a suitable 
engine is one * of the reasons 
why the projected 150-s eater 
airliner is not proceeding as 
fast as some aircraft designers 
would have liked. 

This puts not onty a special 
responsibility, but also a strain, 
on the aero-engine companies, 
for designing and budding an 
engine is a very- expensive and 
■high-risk business. It .can cost up 
to £lbn or even more to launch 
a new. high-thrust jet engine 
today, and for much of the 
initial design period (when 
money is pouring away), there is 
no guarantee of any orders or 
fin* nci a)' rewards. 

Profits 

It can take up to ten years 
from initial conception before 
any profits emerge from any 
aero-engine, but if the- project is 
successful, the rewards can be 
immense, extending perhaps 
over 20 to 30 years (the classic 
examples of such successes are 
the Pratt and Whitney JT-SD 
jet engine, of which more than 
11.500 have been ordered, and 
the Rolls-Royce Dart turbo- 
prop). 

Ganging the market is a 
skilled business, and the engine 
companies do not always succeed 
in being in the right place at the 
right time. Rolls-Royce, for 
example, failed to win any part 
of the A-300 and A-310 Airbus 
markets, which have been 
shared by its rivals. General 
Electric and Pratt and Whitney, 


who seem -likely now to dom- 
inate supply to those two air-: 
craft for many years to come. 

That lesson has not been-iost 
on Rolls-Royce, which is now 
well out ia front with the joint 
UK-Japanese RJ-500 for the 
prospective 150-sea ter market 
but even fha i engine project 
remains subject to Government 
financial support and awaits 
acceptance by airframe manu- 
facturers and orders fro m air- 
lines- 

In fee sales battles that lie 
ahead, fuel, consumption will 
play a far greater role than 
ever before. At a time when 
airlines’ fuel costs are already 
around 30 per cent of their 
total operating costs, every 1 
per cent improvement in fuel 
consumption can mean several 
million dollars a year saved on 
fuel bills over an airline's 
fleet 

The first of the new genera- 
tion of -airliners to emerge, the 
.se mi-widebodied Boeing 767 
twin-engined aircraft has 
opened a major sales battle 
between the two U.S. gian ts, 
General Electric with its CF6- 
80A and Pratt and Whitney, 
wife its JT9D-7R4D engines. 
These engines, of up to 48,000 
lb thrust, represent the con- 
tinuation of a long period of 
development of high - thrust 
engines in the CF6 and JT9D 
Series. 

So far, the battle for the 767 
market is evenly matched, but 
it is a fierce one with neither 
side giving anything away to 
its rival. So far, Rolls-Royce 
is hot involved. Although its 
RB-21 1-524 was — and still is 
— available, so far no airline has 
chosen to adopt it for the 767. 

Rolls-Royce is heavily en- 
gaged, however, in the battle 
wife Pratt and Whitney for 
the engines in the new Boeing 
757 twin-engined short-haul jet 
airliner. 

Rolls-Royce has developed its 
Dash 535 C version of the RB-21 1 
engine, of 37,400 lbs thrust, for 
fee initial Boeing 757s that will 
go into service at the end of 
this year and during 1983, in 
competition with fee Pratt and 
Whitney PW-2037. But Rolls- 
Royce is already developing an 
improved version, fee E4, of 
40,100 lbs thrust, which will cut 
the fudl used by the 757 by 
about 10 per cent compared 
with the initial 535C. 


Some of the 757 customers 
will change their 535C en- 
gines to the E4 version from 
I9SC Total orders .for Rolls- 
Royce-powered Boeing 757s so 
far amount to 101 aircraft firm 
and on option, from five airlines 
— British Airways, Eastern, 
Monarch of the UK, Transbrasil 
and Air Florida. 

Alloys 

Beyond the E4 version of 
the Dash 535, however, RoHs- 
Royce is developing the F± a 
higher-thrust variant designed 
especially for use in long-haul 
aircraft, such as fee Boeing 747 
Jumbo and the DC-10. This 
version of fee engine will offer 
further improvements in fuel 
consumption, and is due to 
enter service in 1985. 

Features of both the E4 and 
F4 engines will be the much 
greater use of new materials, 
including advanced high 
temperature titanium alloys, 
lightweight Kevlar components, 
carbon fibre nacelles and 
thermal barrier coatings on the 
high-pressure turbine Wades. 
These are all intended to help 
reduce weight improve fuel 
eonsiHnption, and also reduce 
noise. 

The F4 version of the engine 
could be of considerable 
significance to Rolls-Royce, 
especially if it helps to widen 
the market for the company's 
engines in fee 747 Jumbo, and 
enables it to win orders on new 
versions of fee DC-10 (a market 
Rolls-Royce has not yet been 
able to break into). Wife the 
Lockheed TriStar production 
now being ended, it will become 
even more vital for Rolls-Royce 
to capture new markets for its 
engines. 

The F4 is coming forward at 
just the right time, when the 
other major manufacturers, 
Boeing and McDonnell Douglas 
are considering new versions of 
their long-haul aircraft McDon- 
. nell Douglas, fbr example, is 
considering the F4 as one of 
fee power-plants for its pro- 
jected Super 10 long-range jet. 

But there is formidable com- 
petition from Pratt and Whit- 
ney’s new PW-2037, a 37.000-lb 
thrust engine which has already 
run at 38.000 fb thrust. Pratt 
and Whitney claims feat when 
compared to fee ’first genera- 
tion turbo-fan engines it will 
replace such as JT-RDs, the 


PW-2037 will offer more than 
30 per cent improvements in 
fuel consumption, or savings 
equivalent to $lni per aircraft 
per year. Additional technical 
improvements to reduce fuel 
consumption even further will 
be incorporated as fee engine 
is developed in airline service. 

As with Rolls-Royce, Pratt 
and Whitney has done much to 
improve fee technology of aero- 
engine manufacture. Among the 
improvements feat will be 
incorporated in the PW-2037 are 
single-crystal turbine blades, 
nickel-based super alloy com- 
pressor discs, and a new digital 
engine control system developed 
for the PW-2037 by United 
Technologies’ Hamilton Stan- 
dard Division. 

These features, says Pratt and 
Whitney, have enabled it to de- 
sign a lighter-weight engine 
with substntial benefits in im- 
proved fuel consumption. Pratt 
and Whitney is aided in the de- 
velopment and production of 
the PW-2037 by Motoren-und 
Turbinen-Union of. West Ger- 
many (II per cent) and Fiat 
Aviazione of Italy (4 per cent?. 
The engine has already been 
selected by Delta Air Lines and 
American Airlines of fee U.S. 
and by TraDsbrasll (which has 
chosen both the Pratt and 
Whitney and Rolls-Royce en- 
gines) to power their fleets of 
Boeing 757 jet airliners. 

Competitor 

General Electric of the U.S, 
fee other of the “ big three ” 
aero-engine builders, is also in 
fee hunt for orders with its 
new CF6-80 series of engines 
in fee 48,000 lb thrust 
class for such aircraft as the 
Boeing 767 and the Airbus 
A-310. So far, 13 airlines have 
ordered CF6-80-powered air- 
craft and in both types of air- 
craft the only competitor so far 
is Pratt and Whitney. 

General Eelectric is also de- 
veloping a bigger-tbrust version 
of the CF6-80, the “ C model, 
which will offer up to 59.000 lbs 
thrust. This will be used in 
such new aircraft as fee Series 
600 version of the A-300 Air- 
bus, the stretched upper-deck 
version of the 747 Jumbo jet 
and any stretched derivative of 
the 767 (such as the 777) feat 
may emerge. The company says 
that today more than. 5,800 GE 
engines are in service in nearly 



Rolls-Royce RB-21 1 Dash -5.35C engines being 
prepared for despatch to the US. for the Boeing 757. 
Now the company is developing an improved version 
which is expected to ait fuel costs by 10 per cent. It 
can take 10 years from initial conception for an 
engine to produce profits but the rewards ca?i be 
immense 


High sales of 
commuter 
aircraft expected 


2.000 commercial, business and 
executive aircraft. 

General Electric is also in 
partnership with Snecma, the 
French aero-engine manufac- 
turer. in a joint company, CFM 
International, to build engines 
for commercial airliners. Tlic 
first venture, the CFM-56. has 
already won considerable 
success, being selected by 
Cammacorp of the U.S. for 
re-engining existing DC-8 jet 
airliners. 

So far, Cammacorp holds 
orders for re-engining 90 air- 
craft, with options for another 
44, using the CFM-56-2 engine 
of 24,000 lbs thrust This engine 
is also being used by the U.S. 
Air Force and French Air Force 
to re-engine KC-135 anil C-135 


tanker-transport aircraft. 

The CFM-56 success has also 
been further extended by the 
decision of Boeing to use it in 
the new 737-300 aircraft, now 
under development. This i> the 
Dash 3 version of about 
20.000 lbs thrust, and it is 
claimed that this engine will 
show' an 18 per cent to 20 per 
cent improvement in fuel con- 
sumption per seat compared 
wife the earlier 737-200 models 
of the aircraft. 

The CFM-56 is also being 
further developed, as a candi- 
date for the projected new 
generation of 150-seat airliners, 
so that it seems likely that 
competition in that field also 
will be fierce in the years 
immediately ahead. 


OIYE OF THE must rapidly de- 
veloping sectors of world air 
I ransport Is the so-called 
** regional " or “ commuter " air- 
liner market. These names are 
frequently used to denote the 
same type of market, allhough 
in fact the “ regional ’’ type of 
airliner is one sealing between 
all and 100 passengers, and the 
■* commuter ” type is a rather 
smaller aircraft, sealing up to 
5U passengers. 

Overall, however, this broad 
category of aim-raft is currently 
one nf fee must promising in 
the world for the airframe and 
engine manufacturers. Over the 

next 1U years, it lias been esti- 
mated. it could provide sales of 
more than I.dini aircraft, worth 
between S5bn and SI dim, with 
perhaps as many again belli f* 
ordered liirouy.li the IMIOk. 

Primarily, these aircraft are 
designed to serve sinnll. com- 
paratively rudimentary air- 
fields. even of fee ” grass strip " 
variety, and to provide fee 
closes! thing to - bus-stop " 
operations yet seen in commer- 
cial aviation. 

It is this type of operation 
that is becoming popular in fee 
U.S.. and lo a lesser extent ill 
Western Europe, not only in 
providing feeder services from 
remote points lo the larger 
- hub ” airports, but also lo 
link smaller communities to- 
gether directly. 

But these new small airliners 
have an even more significant, 
and potentially lucrative, role 
lo play in helping fee air trans- 
port development of countries 
in the Third World. In many 
pans of The globe, air transport 
is only now beginning to be 
accepled as a tool of economic, 
industrial and social develop- 
ment. and fee demand Tor small, 
cheap to buy and fly types of 
aircraft is expanding rapidly in 
many countries in South 
America, Africa. South-Easi 
.Asia and the Far East. 

It is significant that the 
generation of commuter air- 
liners comprises entirely turbo- 
propeller driven types, mostly 
twin-engined (although the de 
Havilland Canada Dash Seven 
has four engines). 

The reason is that in the 
under-developed regions of the 
world where much of the busi- 
ness will lie, cheapness of 
operation and ease of main- 
tenance under difficult terrain 


and climatic conditions Is of 
cn I teal importance. The genera- 
tion of aircraft now Wing dove- 
Injw-d will he just a> useful in 
opening up ihr air transport 
sysleni? of underdeveloped 
countries 1 1 tic* regional role) as 
fpr providing mure sophisticated 
inier-urban .« ernees (the com- 
muter rule l n* the UK, U.S. and 
Western Europe. 

A recent analysis siiofs that 
there are now more than 2i> 
separate manufacturers involved 
in the regional and commuter 
airliner industry, offering 
between them over 30 different 
lypes ot aircraft, uf almost 
bewildering variely. They range 
from ihr small nine-seat Piper 
T-IMO, !hruii;:h existing 19- 
passenger aircraft . of the 
Embraer iBr.r/ili Ban dcir ante 
type lone of fee most successful 
• -oin miller .nvli tiers yet built 
with sales of mer 35U aircraft', 
through to Hie new Fmbraer 
Bv.iNilia and up to the d>- Havil- 
land Canada Dash Fight of 36 
seats and the 50-scat Pash 
Seven. 


Prototype 


In Western Europe, consider- ■ 
able interest has been shown in 
the development of the com- 
muter airliner, and several 
major new programmes arc 
under way. 

Saak of Sweden has joined 
Fairchild Industries of the U.S. 
to develop the SF-34 0, a twin- 
engined turbo-prop airliner, 
seating 34. now in production 
with the prototype maiden flight ; 
planned for late 19S2 or early 
in 19.83, and deliveries to 
customers early in 19S4. More 
fean 10(1 orders for this air- 
craft have already been placed 
worldwide. 

In France and Italy, govern- 
ment approval has been given 
for the collaborative (50/50) 
development of the ATR-42. also 
a twin turbo-prop engined air- 
liner. sealing between 42 and 49 
passengers and aimed at ranges 
of 1,300 km. The two manu- 
facturers, Aerospatiale of 
France and Aeritalia of Italy, 
hope to win sales for up to 900 
aircraft over the next 20 years. 

Already, orders and options 
for the ATR-42 stand at over 
56 aircraft. with letters . 
of intent for another 30. i 
Of the 14 customer airline? j 
involved, five are in fee US. , 


CONTINUED ON NEXT PAGE 


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“! burn mode! planes when ! was a youngster, including w airplanes 
McDonnell Douglas built nearly fifty years ago. My enthusiasm for 
flying— and fbr flying machines— has been growing ever since. 

“The dreams of youth are the same as ! once had— they want to fly, 

to be a part of flying. The commercial heritage at McDonneH ✓ 

Douglas is older than I am. For fifty years we 7 ve been building AfCDOIViV ELL 

commercial aircr^t Our famous tradename ‘DC* means DOUGM-AS t\ 

'airliner 7 to millions throughout the world. Today's DC-9s and 

DC-IOswfll be folfowed by new planes to help carry the people 

of the world as we progress toward a century of building air 

transports, 

“So keep painting our name on the models you build, Carl. And we'll 
keep building new models to make air travel safer, quieter, swifter 
and more peasant-planes for young people like you to bmld dreams ori? 












Technological advances will make aircraft easier to fly and cut fuel bills. Aerodynamic changes will improve performance a 


Intensive search on to reduce weight 


THE NEW 'AIRLINERS now 
either in production or planned 
for the future will differ in 
many ways from their pre- 
decessors, although these 
differences may not always be 
apparent to passengers. 

Primarily, the aim of the new 
aircraft will be to save fuel in 
every possible way. in some 
cases by as much as 40 per cent 
over the older aircraft they will 
replace. These savings will come 
either from the use of new and 
improved engines, or fromaero- 
dvnamic improvements to tne 
aircraft shapes themselves, or 
from a wide variety of otrier 
techniques used to reduce the 
overall gross weight of the air- 
craft, so that less power will be 
needed to get them off the 
ground and propel them through 
the air. 

The search to Teduce weight— 
which in turn reduces fuel con- 
sumption — is being earned to 
considerable lengths. Some air- 
lines are cutting out meals and 
galleys entirely on short-haul 
flights, and putting in extra 
seats: others are eliminating 
seat pocket give-away magazines 
or reducing them in size; others 
are reducing the amount of 
water they carry in toilets. 

Fire hazard 

Some airlines are doing away 
with in-flight duty-free goods 
sales, relying instead on last- 
minute duty free shops before 
departure, thus avoiding the 
need to carry surplus weight. A 
bdttle of whisky multiplied a 
hundred times is:a lot of sur- 
plus weight on any flight as 
well as a potential fire hazard 
in the view of many flight crews. 

These improvements are 
welcome, hut the most signi- 
ficant fuel savings in the air- 
liners of the future will come 
from technological improve- 
ments in the engines. AH the 
major engine manufacturers 
have been spending large sums 
and years of effort in attempts 
to reduce the fuel consumption 
of their power-plants substan- 
tially. 

In its new Dash 535-E4 engine 
for the Boeing 757, for example, 
Rolls-Royce says that improve- 
ments in the engine will cut the 
fuel consumption compared 
with the earlier version of the 
same engine by 10 per cent. The 
,1 . .improvements include a new 
satuper-efficient fan which pro- 
s uces most of the engine’s 
irusL It has fewer but wider 
lades than fans on current 
es, producing power more 


efficiently and allowing the 
mav imam thrust to be increased. 

Another development is a new 
exhaust nozzle which enables all 
the hot gases from the engine to 
be expelled through one nozzle, 
providing savings of Up to li 
per cent in fuel consumption 
while cruising. 

Other improvements in the 
535 engine include high- 
efficiency compressors and tur- 
bines. new electronic engine 
controls, and the extensive use 
of advanced lightweight 
materials, including a 'new high- 
temperature titanium alloy for 
the high-pressure compressor, 
Kevlar for fan-blades, and 
carbon fibre composites and 
titanium sandwich for nacelle 
components. 

Pratt and Whitney, in its 
JT9D-7R4 for the Boeing 767, 
and the PW-2037 for the Boeing 
757, is using many new develop- 
ments, including improved 
nickel alloys in turbine and 
compressor discs, and “single 
crystal " blades in the first-stage 
turbine of the engines. 

“Single crystal" is a Pratt 
and Whitney patented tech- 
nology which is -the result of 
more than 15 years of research. 
Such blades consist of one 
“ grain " of alloy, and are 
claimed to be much stronger 
than blades cast with conven- 
tional materials, while they have 
greater resistance to metal 
fatigue, oxidation and corrosion. 
They also require less cooling 
air, which improves their 
efficiency. 

The new electronic engine 
controls to be used in the Rolls- 
Royce and Pratt and Whitney 
engines will enable more 
accurate power settings to be 
achieved by the flight crew, 
eliminating the need for 
frequent throttle movements 
and “trimming" of the engine, 
which are both fuel-consuming 
procedures associated with con- 
ventional engine control 
systems. These - electronic 
systems are also more reliable, 
thereby helping to reduce flight 
delays.- 

While many of the improve- 
ments are to be found on the 
new jet engines, the scientists 
have not been ignoring the pro- 
peller. There are many in the 
aerospace industry who believe 
that because of the substantial 
fuel savings and less noise that 
can be achieved with new 
designs of propellers, turbo- 
prop airliners may be used 
much more in the. future, in 
some eases even replacing jets. 

In both the U.S. and Europe, 


work is under way to produce 
a multi-bladed propeller, rather 
like a ship's screw, in place of 
today's conventional four- 
bladed propellers. Studies into 
both six-btaded and eight-biaded 
propellers, for example, have 
been conducted by British Aero- 
space. while others interested 
in this approach include Hamil- 
ton Standard Division of United 
Technologies of the U.S. 

The objectives axe to meet 
the increasingly stringent noise 
requirements laid - down by 
governments for new airliners, 
while also increasing the over- 
all aerodynamic efficiency of 
these propellers. 

The results could be savings of 
up to 40 per cent in fuel con- 
sumption over existing pro- 
peller-driven airliners. At the 
British Aerospace Dynamics 
Group, studies have centred 
mainly on propellers with 
diameters of up to 14 feet for 
engines in the 2,500-3,000 horse- 
power range — the type of new 
propeller which could be used 
on any new version of the BAe 
748 airliner. 

Variations 

One of the most significant 
new developments to be used on 
the latest airliners will be a 
cleaner, simpler flight deck for 
the pilot and crew. There are 
severad variations on this theme, 
but in general they make much 
greater use of coloured cathode 
ray tube displays to present the 
crew with essential information, 
in place of the vast arrays of 
dials customarily found in air- 
liner flight decks; and greater 
use of push-button selectors 
rather than old-style switches. 

The overall effect will be to 
clean up the flight decks, mak- 
ing them more spacious and 
comfortable, and helping to 
reduce workloads. 

This is of considerable signi- 
ficance in the light of the cur- 
rent argument over two or three- 
person flight deck crews. Many 
pilots’ unions are pressing for 
three crew on safety grounds, 
while the airlines for economy 
reasons want two, arguing that 
the new jets are entirely safe 
with only two on the flight deck. 
This debate is far from over, 
but the manufacturers stress 
that their aircraft can be flown 
by either two or three. 

The flight decks will also 
increasingly he equipped with 
what are broadly described as 
“ fuel management systems.” 
These are methods whereby 


using an on-board computer into 
which can be fed detailed 
information about the aircraft's 
flight path (such as the posi- 
tions of the radio beacons it 
must pass over), the most 
economical route is calculated, 
and the directions for it fed 
into the aircraft's automatic 
flight control system. 

As a result, the aircraft will 
virtually fly itself to its destina- 
tion, with the pilot acting as a 
monitor, saving time and fuel. 
British Airways, for example, 
has been using this system on 
its long-range Lockheed Tri Stars 
for some years, with substantial 
savings in fuel 

Various aerodynamic Im- 
provements to the shape of new 
airliners are also being ex- 
plored. Among new technical 
developments being tried by 
McDonnell Douglas is the use 
of “winglets" on the tips of the 
wings of a DC-3 jet, to improve 
their aerodynamic efficiency, 


reduce drag and so cut fuel- 
bills. 

A. new . light-weight vertical 
fin made of graphite composite 
materials reduces the fin weight 
by as much as 20 per cent com- 
pared with aluminium fins. A 
DC-10 jet fitted with such a fin 
could save up to 3,500 gallons 
of fuel a year in normal .ser- 
vice.' 

Other aerodynamic improve-- 
meats will be less readily 
apparent In more than 30,000 
hours of wind-tunnel . testing 
since 1970, Boeing aerodynamic- 
ists have refined a new ' cross- 
section for subsonic airliner 
wings — slightly flatter on. the- 
lower surface and thicker 
through the centre; thereby 
changing the airflow over the 
wings and giving, a better distri- 
bution of lift . • • 

The effects , are not only to 
reduce “drag” and improve the 
flying performance' of the wing 
(helping to save fuel) but also 


to increase its strength. The 
Improvements in fuel consump- 
tion come from lower engine- 
power requirements, which in 
turn means less noise, especi- 
ally on take-off and approach to 
landing. 

These new wings also have- • 
greater spans, enabling slower 
landing speeds to be obtained; 
thereby improving safety. The 
new wings are being incorpora- 
ted in both the new Boeing y 
767 and 757. 

These two 'airliners' will- 1 also- 
be built with a much, greater 
proportion of new materials, 
such as advanced composites 
made from graphite or JCqvlar- 
(a Dupont . product): fibres, 
instead- of using aluminium '.or- 
fibreglass. Lighter and stronger 
than either of the two more 
conventional materials,''- .the 
advanced composites will help 
to cut fuel' consumption : by 
amounts averaging 25 per cent 
in the .weight of each com- 
ponent. 




»; ^ \\ 




Cockpit 6n-tte A$iQ Airbus 1*Orires.. 
cathode ray tube : . displays to 
information normally shown by duds, togetnsri^^ 
more comfortable accommodation for the tico-man 
* ; flight . crew . v 


High sales of commuter aircraft 


CONTINUED FROM 
PREVIOUS PAGE 

and others are In Scandinavia, 
South America, South-East Asia 
and Australia. 

The maiden flight of the 
prototype as scheduled for 
August 1984. The production 
schedule calls for first deliveries 
in 1985. 

Also aimed -at the commuter 
airliner market are three other 
European types. The prototype 
of the Short Brothers Model 360 
36-seat twin-turbo-prop airliner 
is already flying, and is 
scheduled for Certification and 
delivery to first customers this 
aut umn, well ahead of any 
rivals, such as the Eznbraer 
Brasilia, the de HaviUand 
Canada Dash Eight and the 
Saa.b-Fairchild 340. 

So far, 15 regional airlines 
throughout the world have 
placed orders for over 100 of 
the 360s, or are in negotiation 
with Short Brothers. 

Short Brothers is also con- 
tinuing to build the smaller 30- 
seat Model 330. for which orders 
have already passed 106, worth 
more than $250m (over £130m) 
including spares. 

To compete in the same field, 
British Aerospace is now study- 
ing an -improved version of its 
BAe twin-engined 748 turbo- 
prop airliner, winch, in earlier 



The Short 360 “ commuter airliner ” -is already 
toinmng orders in the highly-competitioe U.S. 
market and the company expects to sell several 
hundred aircraft m the years immediately, ahead 


versions has already won- orders 
for over 350 aircraft worldwide. 

British Aerospace is also offer- 
ing a smaller type, in nhri« over- 
all market — the 19-seat Jet- 
stream 31, the prototype of 
which, is already flying. is 
also a twin-engined turboprop, 
for short distances, winch can 
also he used as an executive air- 
craft and as a military trainer. 
Production of a first batch, of 


ten aircraft has begun, anti first 
deliveries are due at the end of 
this year. Ten aircraft have so 
far benn ordered or optioned, 
with letters of Intent for $£c 
more. 

Sub-assembly production of a 
second batch of ten Jetstream. 
31s is under way, and manufac- 
turing plans for the third batch 
are being prepared. A produc- 
tion rate of 25 aircraft a year 


is planned .frozd 1984 onwards- 
.. Although nwre a regional ak- 
inTip T than a " commuter,'’ the 
British.' Aerospace . i opr-engined 
100-seat 148- is also competing in 
the latter market. The prpto- 
type.is bow. flying, and Certifies* 
txm is setter later Ohs. summer, 
with, deliveries, starting in the 

jnn rtnmw 

There are already' orders ter 
13 aircraft with options on 12 
more, and further co n tr a cts are 
in negotiation- The aircraft is 
being built in two versions, the 
Series 100 seating up to 80 pas- 
sengers and the Series 200 seat- 
ing ijp to about 109. - 

Outside the UJ5. and Western 
Europe, the major commuter 
aoriioer' manufacturers . .are <Je 
HaviUand Aircraft of Canada, 
and Bmbraer of Brazil. 

...De HaviUand Canada, of 
Downsvnew, Ontario,, has for 
many years specialised in short 
take-off and landing (SToL) 
types of aircraft, mduding the 
h&hly-suociessful Twin Otter, of 
which well over 700 have been 
sold, and winch conti nues in 
production. DHC is now also 
weM into quantity production of 
. its . 50®eat four-engined Dash 
Seven quiet short-take off and 
landing airiiner, «f which well 
over ipo have been ordered. 

In addition, tbe company is 
deyeteping.tjhe smaller 32^36 seat 


Dash Eight, a twfa^en^ared ^ 
liner which wSi oarapJementjfee 
Dash Seven in ,fi» esjpandmg 
market faff co*«niBteiP4ype ills 
croft With ardecs^’weS over 18*- 
100 marie, few. ttae' 
production of the- sftrctaft:tf5bn 
schedule ter roE-out anji rfirst 
flight in mAd-1983/ D&Meifes 
wifi begin in 1984. . '_. 

In the longer- tenm, :l00G‘ ix _ 
considering derivatives olfcotb 
the Twin Otter, and. a 6090 seat 
development of the Dash Soveo 
for service in the mkl to late 
1980s. 

Eznbraer of Brazil has 
developed rapidly offer- the past 
decade to become m of the 
world's major producers of Hgjbt . - 
transport aircraft. Its most, suc- 
cessful so far has been the 
Bandeir&nte (Pioneer) a 1 9 o ut 
twin. - turboprop airliner,; of - 
which more than 350 have been - 
sold, and which continues in 
quantity production- 

Beyond the Bandesrante, the 
new 30sea£ EMB-120 Brasilia 
twin turbo-prop airline is. now . 
under development for a - 
maiden flight in nfid-1983. and 
deliveries in 1984. Orders and 
options for the Brositta stand 
at over 150 aorcraft, and it 
seems likely to remain a popular 
commuter type of aircraft for 
many yeans to come, despite- the 
.fierce competition, worldwide- 



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v|. . ; - Financial Times Tuesday March 9 1982 


THE ARTS 



Festival Hall 




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by DAVID MURRAY 


Bfeti _Grtfel3‘ . all -B eethoven 
reefed on Sunday afternoon 
waa^ffie soft ; that hobbles the 
f reviewer. .overcome by regret 
th# 3ria reader wasn’t there. 
Of* the sonatas Gilels Chose 
opt' JO .NO. 3,' ‘'Lee . Adieus ” 
■Qo^Sla, and the two-movement 
op .00. ■ aiODg . with the op. 79 
Sonatina; and he ..placed, the 
•‘Pfoinfettens” Variations and 
Fugs-op 35. before the interval 
These , were all nonpareil perv 
formances. -not' to be compared 
with those of other masters — 

toocomptetein their own terms 

for irto be asked. whether X or 
Y does something. more, or less, 
with particular- passages, too 
convincingly thought through 
as whole works, too magnifi- 
cently realised at the piano. 

Some notes. In the D major 
Sonata from op. 20 Gilels was 
by turns liquid and fleet in the 
opening Presto,, cogent without 
bumpy emphases. The Largo 
had enormous expressive 
power, with majestic sonority 
in the tenor register, and 
superbly sparing of the damper 
pedal; the Menuetto began like 
a frail afterthought, and yet 
rose easily to its tougher Trio. 
For the first of three times in 
the programme, Gilels brought 
off an inspired throwaway end- 
ing for the Finale with palpable 
relish. ... 

Throughout the - "'Prome- 
theus ” Variations the ham m ered 
B-flats (later A-flat, -and still 
later disorientating E-natural) 
of the crucial bass struck like 


Jovian thunderbolts, even in 
quiet variations. There was 
robust comedy in that— , 
the .theme - itself was 
always treated with pawky 
humour, even when Gilels 1 
singing line had taken wing — 
and rich intimations of other 
feelings too. Gilels fixed the 
difference between the gravity 
of the earlier Sonata Largo 
and the formal elaborations of 
the “Prometheus” Largo uner- 
ringly, adopting quite another 
tone and delivery Lor the latter 
and so allowing the fugal Finale 
to spring naturally from it — in 
evex-bolder arches . and merry 
-cascades, .with towering energy. 
All tile repeats in the variations 
were observed; so often' were 
finger-slips first time round put 
satisfyingly right in the Tepeat 
that one suspected he did it on 
purpose. 

The tittle Sonatina was 
remarkable for a triumphant 
one-in-the-bar treatment of its 
Presto alia tedesca (the usual 
three-in-a-bar tends to sound 
stiff), and a searching Andante 
that avoided any sense of oven 
inflation. The op. 90 Sonata 
made a memorable envoi, its 
lyrical conclusion glowing with 
unforced tenderness in every 
bar. In between came Gilels* 
magisterial account of “ Les 
Adieux,” conceived on the 
grandest scale: how often dioes 
that sonata sound like one of 
Beethoven’s major contribu- 
tions to the repertoire? At 
this point, comment fails. 


Theatre Royal, Stratford, E.15 


Variety Show 

by ROSALIND CARNE 


An - exciting new Arts com- 
plex has opened in East 
London. The Bar Begun at 
Stratford is all but complete, 
though regular punters may be 
assured that there have been 
no unsettling changes in their 
favourite theatrical watering 
hole. Jostling room bas been 
extended, but the stretch. of bar 
appears somewhat shortened, 
thereby compounding the 
usual crush of human and 
creative overspill ; from the 
main auditorium. . 

The mood was merry as ever 
at Sunday night’s variety show, 
a chaotic, though eminently en- 
joyable, ' sequence . of song, 
dance, and comic ‘ sketches. 
Local actress Kate Williams has 
gathered a team of genial 
troopers, who carry the audi- 
ence with ease and not a hint 
of aggression or awkwardness,, 
however broad or . bpld the 
humour. Performances ran 
from Thursday to Sunday 
throughout March’ and proceeds 
will be donated to the fund for 
the theatre's much-needed new 
seating. 

The recipe varies slightly 
from night to night and the 
trump card on my visi t was a ; 
peculiarly droll tittle episode by 
playwright Victoria Wood; Who 


else could pack lizards, lentils 
and librarians into a brief and 
highly amusing study of sexual 
ignorance? Later on, a wonder- 
fully shameless Marcel Steiner 
demonstrates the art of coupling 
with a female tape recorder. I 
have never seen anything tike 
him — huge, 'hairy, shambling, 
and compeltingly repulsive, 
somewhere between Leopold 
Bloom and Sweeney Agomstes. 

In total contrast, we are 
treated to two displays by three 
woman members of the Gymnas- 
tic Dance Theatre. It would be 
diffi cult not to marvel at their 
loose-limbed contortions, though 
I would have enjoyed more 
emphasis on dance and less on 
gym. ' Their act has * tone of 
austerity, which sits ill with the 
prevailing spirit of the occasion. 
Other high spots are two char- 
lady prima donnas, some soulful 
clarinet from Tommy Shand, and 
bright, blatant but sloppy chorus 
girl 1 routine from Julie and 
Sylvestra, and the lovely 
Dolores, six foot plenty with 
shoulders like a navvy — but then 
she probably is a navvy. Music 
hall patter and song from 
Christine Pilgrim winds iip the 
hectic medley with appropriate 
pazzaz. ’ - 


‘Ladbroke Lecture Concerts 
live on BBC -2 


> ■ 


A 7 series of lecture concerts, 
sponsored by the . Ladbroke 
Group, will , enable . thousands 
of young people to be intro- 
duced to classical music by 
such exponents as •. Claudio 
Abbado. Rudolf Serirfm Yehudi 
Menuhin and the London 
Symphony Orchestra, at - the 
new Barbican Arts . Centre. 

The Ladbroke Lecture Con- 
certs . presented by broad- 
caster and TV personality. John 
Amis, are to be televised live 
on consecutive Sunday after- 
noons, on March 14, 21 and 28, 
in the Barbican Hall, the ISO’s 
new home. 


.Each of/ the three pro- 
grammes will comprise a pre- 
concert- talk-, open. -rehearsal 
and “meet -the -‘artist ’* inter- 
view; with conductor and artist 
discussing the main-work to he 
performed later that-, week. 

Initially, the *■ LSO bad 
envisaged subsidising . tickets 
for young people in particular, 
with the help of a. sponsor. 
Cyril Stein, Ladbroke’? chair- 
man, went a step further by 
offering . to increase , the 
sponsorship fee by. 50 per cent 
so that youngsters keen to 
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Round House 


Maxwell Davies 


by ANDREW CLEMENTS 


' Figures and railings," mixed media sculpture by John Davies 


Metropolitan Art Museum* Tokyo 


Aspects of British art today 


by WILLIAM PACKER 


To travel to the other side of 
the world simply to see the art 
of one’s own country may seem 
to be a conspicuously perverse 
exercise, and especially so when 
the goal is Japan, which has 
enough of her own that is 
strange and rare. But then the 
great Japan Exhibition, lately 
closed at the Academy, had the 
boot on the other foot, and must 
surely have demonstrated to 
Japanese eyes, quite as much as 
it delighted ours, that to make 
such a pilgrimage may not be 
so odd after alL For to see 
something afresh is almost to 
see it for the first time, and 
certainly, as when we surprise 
outselves in a double mirror, it 
helps us to see it clearly, and 
whole. It does us good some- 
times to put a certain distance 
between ourselves and what is 
ours. 

Aspects of British Art Today, 
which our Ambassador declared 
open in Tokyo ten days ago, and 
is to tour Japan until the 
aut umn though it has been 
almost as long In its prepara- 
tion, and returns the compliment 
with the nicest timing, is in no 
sense comparable or counter- 
part to Great Japan, nor was it 
ever meant to be so. It has not 
the scope nor the same compre- 
hensive historical ambition; but 
for all that it is an exhibition 
of real importance, and in its 
more general implications per- 
haps of lasting significance. That 
we should learn from it certain 
things about ourselves is to be 
expected, but as much would be 
true of any such exercise: it is 
what it tells us of ourselves in.- 
particular relation to Japan at 
this .time that is most important 
of all. ' 

We hardly need-'-tellihg of 
Japan’s extraordinary techno- 


logical and industrial achieve- 
ments that have followed upon 
her whole-hearted post-war 
commitment to the West; but in 
cultural ’ matters her case is 
somewhat more equivocal, 
ambiguous, uncertain. . It most 
take time to resolve, but the 
problem centres around Japan's 
own .-sense of her cultural 
identity, a distinct culture but 
one no longer isolated and far 
removed from an international 
stage. Moving on to the par- 
ticular issue of the visual arts, 
the questions are: how should 
tile Japanese artist address 
himself to the wider world; 
should be do so at all; and what 
kind of example should be look 
to from abroad? 

Deep waters indeed, and 
what answers there are can 
only be mixed, and half- 
answers at best No one would 
suggest a precious and reac- 
tionary insularity on the one 
band, slavish imitation on the 
other, but rather a -proper 
cultural pride and an open and 
critical mind One would ask 
that the Japanese be true to 
themselves in the situation they 
have made for themselves, 
neither apologising for their 
past nor slaves to it nor merely 
supplying the modern art that 
they might think is required of 
them- The symptoms, of which 
the recent celebration of Edo 
in London was one, and these 
British Aspects • in Tokyo 
another, would seem to he 
encouraging. 

- Avid .for western art, the 
Japanese deserve the real thing, 
and - not single spies only that 
might prove deceptive, but in 
battalions, trouble-free, we hope.- 
They asked for Aspects of : 
British Art Today to be sent 
to them, a nd then quite rightly 


involved themselves fully in the 
processes of selection and pre- 
paration. The exhibition is 
thus the fruit of a true colla- 
boration between the Japanese 
museum authorities and the 
officers of tbe Department of 
Art at the British Council, with 
Dr David Brown of tbe Tate 
coopted as particular adviser, 
and as such is indeed unprece- 
dented. 

It can only be a partial and 
divided beast, a sample rather 
than a survey, and one which 
must register both a Japanese 
and a British view of its subject; 
but that it should do as much 
and yet retain a real integrity 
is no small thing, and it does 
much more. With some 33 
artists in the side. 24 of them 
represented by substantial one- 
man displays, it would be easy 
to dwell on tbe actual choice. 
I must say there -are some I 
would positively have rejected, 
others who are just a Shade 
lucky to have been included. 
Gilbert and George, for example, 
have given me pause on many 
occasions over the past year or 
so, and I have been almost 
persuaded, but now at last I 
know that their radical- chic 
attitudinising is too much for 
me to take seriously; and John 
Edwards and especially John 
Hoyland are two good painters 
not currently at their best; there 
are others rather light-weight 
perhaps, or stuck in their ways. 
And there is the introductory 
section, which must have seemed 
a better idea earlier in the 
planning than in the event; 

But I am carping so must 
plead it as a compliment The 
show has the. virtues of its 
faults, -and more, besides, serious 
enough to require criticism, yet 
overall positive, generous and 


at ease with tbe risks it takes. 
Its achievement is to represent 
: British Art not fully, but at least 
characteristically, showing some- 
thing of the range and variety 
of our artists' preoccupations, 
and a very great deal of its 
substantial accomplishment, 
carried through so often with 
such elan. Hockney. Hodgkin, 
Long. King, Caro, Riley: all 
quite rightly are familiar on the 
international stage, but how 
good it is to see such artists 
as Adrian Berg, Alan Green, 
Nigel Hall, Tony Cragg. Roger 
Adding, Anthony Green. David 
Nash and Hamish Fulton emerge 
to join them. 

But what can any of it 
possibly say to the Japanese? 
It demonstrates most forcibly 
that whatever the nominal or 
apparent dissimilarities might 
be between the work, artist by 
artist, a strange chemistry will 
hold it together, a bond com- 
pounds! of those shared experi- 
ences and unspoken sympathies 
that amount to a culture. The 
British sensibility appears to 
embrace all comers, and remain 
even with those who appear to 
move away. The preoccupation 
is not with statement, or image, 
or manner, but rather with 
material, stuff, things, places. 
The work is there to trap the 
experience for others to share, 
shot through with imaginative 
possibility. Inevitably tbe artist 
is drawn close to nature, if 
only implicity; which is a con- 
nection that tbe Japanese, of all 
people, should make with the 
greatest ease. Here, in this 
exhibition, it is clearly seen that 
a Western nation, a European 
nation, is no less in its achieve- 
ment for being so distinct. 


Festival Hair 


Tony Bennett by ANTONY THORNCROFT 


Tony Bennett may not be the 
most fashionable singer of the 
day but he packed, tbe Festival 
Hall twice last weekend and 
pleased the audience with an 
act . which need_ not have 
changed for over a generation. 
Certainly there, was hardly a 
song' in his two-hpur set without 
a venerable ancestry and ^how - 
welcome it wag _ to hear them- 
again. •• •••■ 

“More than you know,” " Til 
remember April,” “Don’t : get 
around much any more,” even 
“Lazy afternoon,” rather in- 


congruously . dedicated to Scot- 
land, all those standards lost 
beneath the clean sweep of the 
youth-rock revolution of the late 
1950s. were back on parade. But 
now the old ways are in fashion 
. in- 'the • U.S. and Tony Bennett 
is. the perfect Master of th6 
President's Music. 

• It would be useless to pre- 
tend that the Bennett voice, as 
such, would win a Bntlin’s talent 
contest on its own merits: he 
adopts some very bizarre 
approaches to the high notes. 
But the phrasing is. if anything, 


better than I remembered and 
the casual, almost conversa- 
tional, style has great charm. 
For the first half Bennett was 
backed by the , Ralph Sharon 
trio and. you could .imagine that 
in a" smokey: night club the 
impact would, have • been con- 
siderable. Atmosphere was 
sacrificed in the formal Festival 
Hall. • The : arrival of an 
orchestra after the interval put. 
Bennett’s ' voice under greater 
strain, but the flow of memories 
was unabated. 

The image may be Las Vegas 


— the little bow in anticipation 
of applause at the recognition 
of each song ; the honeyed 
words — but by the end, after 
an attractive Duke Ellington 
medley which suggested that 
Bennett is much more of a 
jazz man than an awful “ I left 
my heart in San Francisco" 
schmaltzer. and some very 
gracious treatment of the fans, 
I felt that while Tony Bennett 
survives the preservation of the 
old classics could not be in 
safer hands. 


Peter Maxwell Davies's two 
music-theatre pieces of the late 
1960s. Vesfllii Jconcs and Eight 
Songs jar a Mad FTing. brought 
him more celebrity and 
(briefly) notoriety than any- 
thing else he has written To 
date. Their coupling in a single 
programme is an obvious, per- 
haps too obvious, temptation 
and fer the last of this season's 
Arts Council Contemporary 
Music Network tours the Fires 
of London is taking both works 
aroand the provinces. On Sun- 
day they began the expedition 
at the Sound House. 

Anyone who experienced 
Vesolii lames as danced by 
William Louther will know the 
punch the work can pack: 
genuinely shocking, transfixing 
in an alarmingly vivid way. 
The present staging is danced 
by Mark Wraith and choreo- 
graphed by Ian Spink, and 
memories of Louther’s physi- 
cal iiy and mcnaco are nercr 
entirely replaced by the glosses 
of the new conception. Wraith 
is a gentler, more intimate 
dancer than Louther. replacing 
passion by compassion and fold- 
ing himself around ihe solo 
cello line, superbly played by 
Alexander Baillie. 

The ending— the resurrection 
of an Antichrist rather than the 
Christ whose passion has pre- 
viously been enacted — is 
thrown away in the appearance 
of a camp, Ortonesque figure, 
who neither scandalises nor 
terrifies. The violence that lies 
just beneath the surface of the 
score is here thoroughly re- 
pressed, and at least one layer 
of meaning in this many- 
layered score is minimised; few 
of the dances begin with the 
assumption of the position of 


the Vesalips engraving, and as 
a result the whole conception 
becomes much less tightly 
organised- 

The passing vulgarities of the 
choreography, as well as the 
doleful acoustic of the Round 
House, which dampened the 
most rebarbative textures, made 
for a positively underwhelming - 
performance. But Vesnin is a 
strong enough work to survive 
even such unsympathetic sur- 
roundings. and its musical 
strength alongside the Eight 
Songs was never more sharply 
pointed. Michael Rippon's sing- 
ing of the songs of Georce III 
seems to me wrong-headed in 
almost every aspect. He pa>s 

scant attention to the precisely 
notated vocal lines, preferring 
to run through a repertory of 
comic voices which brought 
laughter where the work 
demands pathos and lack of 
dramatic focus elsewhere. 

Mr Rippon’s cause is hardly 
helped hy the present susmi;, 
which seems in rely on the 
indications in die score for all 
its ideas. The four axes that 
house the instrumental l -L were, 
far loo close together; much of 
Ihe acting area was left — un- 
wisely — for the King i«» strut 
and posture. But a “ produc- 
tion ” which can set wrung the 
work's single most dramatic 
moraoni. the King’s breaking of 
the violin, his ritual acceptance 
of insanity, cannot be forgiven, 
and nor can Mr Rippon for Ins 
uncomprehending shrug which 
greeted that act. Tight, accurate 
playing from the Fires con- 
ducted by John Carewc, hut the 
excitement which one remem- 
bers front earlier performance* 
was never suggested. 


Barbican Half 


Abbado and 
Ashkenazy 


by MAX LOPPERT 


We shall probably be tempted 
to “review” tbe Barbican con- 
cert hall, for some time to came, 
quite as much as the musical 
performances given there. In 
tbe nature of things, this is in- 
evitable, indeed proper: ears 
(especially London ears accus- 
tomed to hearing its orchestras 
placed in quite different acousti- 
cal perspectives) need tuning 
and retuning, especially if their 
owner’s seat position changes 
•with each visit From a seat 
farther back on the left side of 
tbe stalls than for the opening 
last week, I found the Barbican 
Hall's sound picture notably 
allered in some particulars, yet 
still imbued with distinctive 
and pleasingly warm presence. 

For its piano concerto at 
Sunday’s concert (to be repeated 
during, the coming week). 
Ashkenazy the London Sym- 
phony under Abbada had chosen 
Prokofiev’s Fifth. It is a work 
in which from first note to last 
tbe piano asserts, sometimes by 
leaps and bounds, sometimes in 
furious bursts of force; and it 
was unexpected to find the 
piano’s assertion here somewhat 
diminished by the muting of 
solo' .instrument relative to 
orchestra, particularly if one 
knows the pianists's formidable 
and scintillating command over 
the piece from any previous en- 
counter. The piano sounded 
“ backward once one got 

used to it, the effect was not 
unpleasing, though it reduced 
somewhat the sense of virtuoso 
solostic zest redeeming Proko- 
fiev’s pallid melodic inspira- 
tions. 

The concert began with a 
rather unsmiling, very precise 


account of Rossini’s Itclian G-rL 
Overture: and ended with the 
Brahms First Symphony, in 
which the orchestra gave at last 
a salute of confidence in the 
tonic effect of its new home. 
String playing whose earlier 
plain-toned quality one was 
ready to ascribe to the acoustics 
gained warmth, substance, 
variety of colour; indeed, the 
whole performance took wing. 
It was a reading of force and 
fire, combining dramatic projec- 
tion, lyrical characterisation. 
and genuine symphonic breadth 
— in my own experience, 
Abbado’s Brahms has in the 
past carried an inhibitingly 
dutiful, respectful persona which 
it here resoundingly shed. (If 
only he could be persuaded to 
seat the violins antiphonaliy, 
Boult- and Kempe-fashion. how 
much more- charge the argument 
would acquire!) We shall have 
little to complain of if all the 
LSO traversals of a safe and 
predictable repertory at the 
Barbican in the next few months 
turn out to be as stirring as this. 


1982 Reith 
Lecturer named 


The 1982 Reith Lectures will 
be given by Professor Denis 
Donoghue. holder of the Henry 
James Chair of Letters at New 
York University. 

The six half-hour talks, on 
Radio 4. will be about the 
failure of contemporary arts 
criticism. They begin on Radio 4 
in November and will be 
repeated on Radio 3 and also 
reprinted weekly in The 
Listener. 


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FX CROSSWORD 
PUZZLE No. 4,817 

ACROSS 


1 Criticise star performer with 
a remedy for .everything (7) 
5 A citizen to make liable (7) 
9 Keep a tractor (5) 

10 Ancient British chief needs 
a bird in tranvestite clothing 
<9) 

11 Rendered drunk (9) 

12 One who runs away to mock 
(5) 

13 Teniers and family and a 
goat-like animal (5) 

13 Inveterate habit caught in 
tbe art of summing up (9) 

18 Domestic pets constantly 
quarrelling (33-3) 

19 Doctor a single idle fellow 
(5) 

21 Scratch a hot dish (5) 

23 A letter De reference (9) 

25 Do I meet or make a latent 
shooting-star (fl) 

26 A safe flag (5) 

27. A number of players take 
note about the set (7) - 

28 Flower in golden vessel (7) 


DOWN 

1 Remove the stone from a 
small lump with palpitation 
(7). 

2 Fresh place of sale for game 
(9) 

3 Weight of article in vehicle 
(5) 

4 A morning getting through 
the contents of a beach & 
tbfis is it (9) 

5 Synonym on Ordnance Data 
in a meeting (5) 

6 Impudent without a yashmak 
<9> 

7 Keen we hear, but a bore 
15) 

8 Shoot right in the sinew 
(7) 



14 Animal for grandmother to 
attack vigorously . . . (5-4) 

16 . . . and savage self-concern 
for animal cannfhaJis ni 
(3-3-3) 

17 Is nought a source of inter- 
ference in a slate of equili- 
brium? (9) 

18 A top accountant with cop- 
per and soldiers (7) 

20 Item of jewellery for a 
receiver to reduce in price 
(7) 

22 A cane with which soldiers 
beat (5) 

23 Near to a hundred fail to 
win (5) 

24 Horrify a soft friend (5) 


Solution to puzzle No. 4,816 



adaaanaaii 


a 


■" -7 






24 





Financial Times' Tuesday March 1 ';9 i 19SJ . 


FINANOALTIMES 


WRESTLING WITH RECESSION— 2 


BRACKEN HOUSE,|CANNON STREET, LONDON EC4P4BY 
Telegrams; Flnantimo, London PS4.Te!ex: 8954871 
Telephone: 01-248 8000 - 


Tuesday March 9 1982 



a 





Questions on 


Trident 


MR JOHN NOTT. the Defence 
Secretary, says that the critics 
of the renewal of Britain's inde- 
pendent nuclear deterrent are 
gaining ground because the 
Government has not recently 
joined in the argument. The Gov- 
ernment will come into the open 
shortly when it announces its 
chosen successor to Polaris-r- 
alraost certainly the Trident Do. 
the submarine-launched missile 
already selected for the U.S. by 
President Reagan. 


Perspective 


All that is about par for the 
course. In the past. British 
administrations have reached 
their decisions on nuclear 
weapons policy within a tiny 
group of ministers and officials, 
and then defended them more 
or less successfully in public. 
Yet a decision to replace 
Polaris with a more devasling 
system designed to last through 
the first decades of the next 
century is rather more 
momentous than simply prolong- 
ing the life of the system we 
have. It deserves wider discus- 
sion. before rather than after 
the event 

One factor worth considering 
is the historical perspective. 
When Britain first began to 
develop atomic weapons, she 
was still a great nnw^r. albeit 
beset by turmoil \r T ~- rope. The 
Americans, of eours* soon 
caught up and surpassed r«. Pri 
there was then another factor 
which helped keep Britain In 
the nuclear league. The two 
countries had developed the 
weapons together and between 
them had won the war. It thus 
seemed a natural part of the 
special relationship that the 
U.S. should enable Britain to 
remain an atomic power more 
easily and more cheaply than 
would have been possible by our 
own efforts. 

In the early 19S0s. however, 
the perspective is different. The 
record of at least the last "0 
years has been one of relative 
British decline. The Britain 
that may now embark on a 
replacement of Polaris is a 
medium-sized European power. 

This raises several questions: 
nuclear proliferation, for a 
start. The Government says 
that it is against it. Bui if at 
the same time it defends the 
independent deterrent by say- 
ing that there might be 


occasions again when Britain 
will have to stand alone, it is 
hard to see why other coun- 
tries should not use the same 
argument. There cannot be 
indefinitely one rule for Britain 
and another for (say) Argen- 
tina or Brazil. 

The theory' of deterrenci 
that is. that if you have a deter- 
rent. you won’t have to use it — 
has also tended to be overtaken 
recently by looser talk of a 
nuclear vrar being fought That 
alone should underline the 
serious nature of the forth- 
coming decision. 


Alliance 


Yet it seems to us that in 
the British case the central 
question is rather different. It 
is: what is the value of the 
British deterrent to the Atlantic 
Alliance as a whole? The 
alliance has done more than 
‘anything else to presene peace 
in Europe for the last three 
decades and the main objective 
of British foreign policy in 
future must be to cement the 
alliance. The fact is. however, 
that it has never been estab- 
lished how far our allies 
believe that the independent 
deterrent is the best contribution 
that Britain can make. That 
should be a matter for consul- 
te*'on. especially when economic 
CO'S?' rebus are limiting cooven- 
’•o-ai Hefence. It may be that 
'* lime for a new division of 
labour — and of expenditure 
wfthin the alliance. 


S ALES PER employee in 
Tootal's UK factories have 
gone up 30 per cent in the 
past year- Trading profit per 
employee has risen by around 
60 per cent. Both improvements 
are a result o5 wide-ranging cut- 
backs introduced by the com- 
pany. 

Wiggins Teape’s output of 
adhesive and photographic 
papers has risen by about 13 
per cent in terms of tonnes per 
man during 1981. 

At GKN's Brymbo engineering 
steel works in North Wales the 
hours needed to produce a ton 
of finished steel have been 
reduced from 10 to 7.7 in two 
years by a £2ra melting shop in- 
vestment. The 2,200 labour 
force has been cut by 700 and 
labour flexibility has been vastly 
improved. 

Virtually all the 15 com- 
panies included in the FT’s 
Wrestling with Recession series 
18 months ago have made such 
economies. 

Most talk in terms of imme- 
diate productivity gains of 10 
per cent or more. Labour and 
other costs have been cut by up 
to 15 to 20 per cent At least 
three or fnur companies have 
cut so deeply that, quite inde- 
pendently of each other, they 
described what they had had to 
do as “hacking” through their 
organisations. 

The 53.000 jobs that have 
been lost in these companies 
alone are a measure of this 
hacking.” And none of the 
companies expects to take much 
labour on for at least a year or 
two. 

There are a few exceptions — 
Northern Engineering Indus- 
tries, for example, is recruiting 
for nuclear plant work at Gates- 
head but says that, otherwise. 

we only really expect small 
fluctuations around our current 


levels.” 

Mr John Young, managing 
director of Weir, which has 
turned itself round after its 
spectacular near-collapse a year 
ago. says of his pumps business: 
“We've got our labour require- 
ment and the size of the work- 
force more or less in balance 
and when orders pick up— 
though there's no sign of an 
upturn in the UK — we should 
get the productivity” The 
labour force in the pumps busi- 
ness has dropped from over 
4.000 in 1979 to 3,300. Total 
group employees are down from 
8,200 to 5.200. 

Some of the companies — IMI. 
Tootal. Croda, Johnson and 
Firth Brown and Gestetner — are 
likely to declare more substan- 
tial redundancies this year, even 
though almost all the companies 
say that their major surgery is 
completed. 

Despite the hopes that 
Ministers pin on small busi- 
nesses for Britain's industrial 
revival, there is no sign that 
the two smallest and most 
successful of the 15 will take 
on any more than a handful 
of employees. Dale Electric’s 
labour force is more or less 
constant at around 1.000 em- 
ployees (the company is 
expanding more abroad than 
in the UK) and Digico’s is 
around 200. 

But Digico’s does show how 
a high-technology company has 
managed to ride the recession 
with little apparent concern. 
Its top management is not even 
sure that it has been affected 
at all — though the company 
realises that it must have lost 
some orders. But it is an 
expanding business — making 
computers — and even com- 
panies strapped for investment 
cash have been spending a few 
thousand pounds on Digico's 
sort of products. 


As British industry 
waits to hear what help 
it will receive in today’s 
Budget, John Elliott 
returns to the 15 
companies profiled in the 
FT’s 1980 series, 
Wrestling with 
Recession, to see what 
productivity gains they 
have made 



Digico’s growth has slowed 
from a forecast 50 per cent a 
year to about 30 per cent so 
its turnover of £2.6m in 1979 
and £3. 5m in 1980 is expected 
to hit £6m this year. Last March 
it raised £2.3m equity for 
investment from 30 City insti- 
tutions through Fleming’s, the 
merchant bankers, and it is now 
owned 60 per cent by outside 
interests and 40 per cent by 
the directors. 


Having chosen its niche far 
expansion, Digico launched a 
£l,500-£4,500 micro - computer 
last August and has been 
amazed to receive 350 orders 
already. A Mark 2 version is 
now being launched and Digico 
is also moving successfully 
towards bridging the gap both 
between individual micro com- 
puters and between mini and 
main frame computers. 

Another company happy with 
its record is Croda. which last 
week beat off a takeover bid 
from Burmah. Its chairman. 
Sir Freddie Wood, is now about 
to launch Croda on a second 


cost-cutting and slimming- ‘down 
exercise in order to meet, pre- 
tax profits forecast of. £16in. to 
£20m issued for 1982 during the 
bid battle (1981 profits ' are 
expeetd to total £10m). 

In the past two years, six 
gelatin and ink-making fac- 
tories have been sold, £5m has 
been realised from sales of 
shareholdings in other com- 
panies and surplus property, 
and £10m has ben cut out of 
working capital, mainly through 
a drive on stocks. These moves 
were in line with a policy 
decided by the Croda board in 
August 1980. 

“Now we have launched 
Counter Attack 1982 to do the 
same thing again, looking . at 
all our manning levels, capital 
expenditure and expenses,” says 
Sir Freddie. The 5,000 UK 
labour force will be reduced, 
but not, it is expected, by as 
much as the 25 per cent cut in 
the past two years. 

But the less optimistic side 
of what has been happening is 
evident in some of the cutbacks 


companies have had to make. 
Apprenticeships, for example. 
' have been hit in companies like 
Jones and Shipman (see below) 
and in GKN, which has also had 

to sack a few apprentices when 

closing factories. Some managers 
hope, however, that changing 
technology and new training 
arrangements will eventually 
-offset, that loss. 

Research and ' development 

has also been cut back a tittle 
in such companies as GKN and 
Weir while Gestetner. which says 
it .needs to increase its expendi- 
ture considerably, would like the 
Government to provide . more 
financial incentives. 

Capital Investment has also 
been cut in some companies as 

- well as being switched abroad 

by businesses like GKN which 
started' to change its inter- 
national balance in the early 
1970s. . ; 

- The problems that cutting 
investment : can create are 
graphically put by Mr George 
Hardie, finance director of 

- Johnson and Firth Brown, which 
invested only in line with its 
rate of depreciation (£5.7m) in 
19S1 instead of at 1| times that 
rate. 

"That's all right for a year 
or two, after our previous heavy 
investment programme, but in 
' a year or two more, if we can’t 
find the funds for reinvestment, 
then we just get weakened and 
can’t compete. Then one might 
have to drift out of things 
again,” he says. 

Johnson and Firth Brown 
also provides an example of 
how' it can still be difficult to 
achieve productivity gains. It 
set out last year to reduce its 
major Firth Brown' special 
steels subsidiary labour force 
of 4350 by 1,400. It still has 
to achieve the last 250 redund- 
ancies and also wants to make 


farther savings* of 27 per Mel- 
on payroll costs which the 
trade unions involved say 
would mean a further uh accept- 
able cut of 500 jobs. 

“ Firth Brown is still not prv 
Stable or as productive , as «tr 
international competitors and 
ft Is difficult to see how. lt can ; 
become so without further sav- 
ings,*' says Mr Hardie. “If any- 
thing is to come of this. reces- 
sion we must be able to .compete 
jn international markets' _ 

That point touches on ■ fee 
issue om how permanent fts 

productivity savings really are. 

Some companies are already 
worried that labour relations 
have not been significantly 
transformed. ' “ You’d have 

thought in the past two years . 
that we would have cracked 
this ‘fitter and his mate'- syn- 
drome but it’s still sticking in 
some places,” said one senior 
manager in the engineering in- 
dustry. 

The first question is whether 
gains that have been achieved 
will stick when the upturn 
comes. The second is whether 
the productivity improvements 
are just once-a nd-f ora H ; gates 
or whether las seems less 
likely) the habits and motiva- 
tions of managers, workers and 
trade unions have been so sig- 
nificantly changed that Britain 
will be permanently better at 
seeking out new markets, at- in- 
troducing new products, at . 
making cost-cutting savings; 
and at improving ' ' labour 
efficiency. 

Only if there has been such 
a fundamental change will 
Britain’s poor productivity- 
record be permanently im- 
proved as a result of . whai 
several companies rati -the;, 
“traumas” of the past two : 
years. 


I' *s n lso odd that the British 
decision should be being taken 
in isolation from the French, the 
other European nuclear power. 
At the very least, there should 
be discussion between the major 
allies ehnut what Europe wants 
for its defence in the year 2,000. 


^liMsHjEED -BISCUIT 


WEDGWOOD 


JONES AND SHIPMAN 


Consent 


‘People still 
have to eat, 
thank God’ 


The last point is that it is 
questionable whether Britain 
slice Id announce a devastating 
new weapons system when 
President Reagan appears to be 
about to launch a new initiative 
on strategic arms control. In 
short, the case for the need to 
reach a decision on replacing 
Polaris now is not proven. The 
decision win be of fundamental 
importance for a generation: It 
needs to be based on a wider 
consent than the Government 
has secured so far. 


German labour 


true to form 


A GREAT deal of huffing and 
puffing on the West German 
industrial relations scene has 
come to a surprisingly meek 
end. The unions are living up 
to their tradition of moderation. 
They are also putting jobs 
ahead of wage increases — hardly 
surprisingly if one considers 
that the seasonally adjusted un- 
employment figures have risen 
from 1.4m in September 19S1 
to 1.6m this January. 

The key bargain was struck in 
North-Rhine Westphalia, the 
Ruhr state, between IG Metal], 
the country’s largest union, and 
employers in the engineering, 
electrical and vehicle building 
industries. It awards rises of 
4J-4.5 per cent, which means 
that IG Metall. for the second 
year in succession, is willing to 
forego real pay increases. 


port points out that the exter- 
nal current account has been 
improving steadily since the 
record deficit of DM 29.Sbn 
(about £6.9bn) in 1980, and 
says that there are justified 
hopes that current payments 
will be in balance this year. 


UNITED BISCUITS has not 
been hit as hard as more 
traditional manufacturing 
companies. “ People still have 
to eat in a recession, thank 
God,” says Sir Hector Laing, 
the chairman. 

Bui it has still chalked up 
a 10 per cent saving on the 
man-hours taken lo produce a 
ton of biscuits during the past 
tiro years. Its biscuit com- 
pany's labour costs have been 
cut by 12 to 15 per cent and 
the cost of materials used lor 
packaging biscuits has been 
cut by about 5 per cent 
(£l.lm) in the past three 
years. 

In 1950 it took 126. man- 
hours to produce a ton of 
basic biscuits. Today the 
figure is 25 man-hours but the 
target, with more automation. 
Tor 1984 is 10- • 

United Biscuits’ food com- 
pany is moving gradually 
towards a major change in 
working hours with the 
eventual aim of employing 
only part-timers. 


Each employee will work 
25 hours a week and the 
factory will operate for 75 
hours a week. This Is expected 
to suit female workers (90 per 
cent of the 5,000 employed 
now are women). It Will also 
mean that 1J8M more people 
conld be employed, while 
saving the company meal break 
costs and other extras. 

Although trade union agree- 
ment has not .yet been gained, 
the co-operation of unions 
and sbopfloor workers has 
been important in the. other 
savings. People are- not. 
usually replaced when they 
leave— their jobs are taken 
by ■' existing workers under 
general flexibility 

The only major cutback — 
which shed 1.700 jobs — has 
been -the closure of a cake 
and frozen food factoiy at 
Osterley. West London. Cake 
production there was aban- 
doned. but the frozen food 
business was integrated else- 
where at a cost of £10m, 
whieh the company says will 
be recouped In two years. 

Shopfloor redundancies 
have totalled some 3,000 ont 
of 14,000. 

Other saving? have been 
made by rationalising distri- 
bution and other support 
activities. 


The tea cup 
proof of 
productivity 


WEDGWOOD'S shopfloor labour 
force in the UK has been 
reduced by 25 per cent over 
the past two years from 7,000 
to 5J250. 

But days worked .are down by 
30 per cent because of short- 
time working. -• 

Direct labour costs now 
account for 25 per cent Instead 
of 27 per cent of the total cost 
of making, for example, a tea 
cup. 

In addition, staff has gone 
down by is per cent from 2,600 
to 1,300. Overall overheads 
have been cut by 19 per cent. 

Four factories have been 
closed and their work concen- 
trated in the remaining 15. 
Generally the factories are now 
working at only 70 per cent of 
full capacity compared with a 
peak approaching 90 per cent 
from 1977 to 1979. An improve- 
ment up to 75-30 per cent is 
hoped for in 1982-S3. 

Further productivity im- 
provements are being sought 
through work study schemes 
and greater use of quality 


circles which Wedgwood helped 
to pioneer in the UK. 

But Mr Peter Williams. 
Wedgwood’s deputy chairman, 
has reservations about the im- 
pact of the recession. Not only 
does he believe that it has 
proved a “hard way to win a. 
limited objective,” but he also 
thinks that Wedgwood is not 
the sort of' business that can 
obtain dramatic productivity 
improvements quickly. 

He is also concerned about 
the impact of high interest 
rates. He says that . Wedgwood’s:. 
£2.4m bills for interest charges 
on working capital would have 
been £700,000 -higher in the 
past two years If it had raised 
the finance in the- UK instead' 
of going to Japan and Ger- 
many. 

But he argues It is “not 
sound policy” to finance capi- 
tal expenditure in foreign cur- 
rencies. The 15 to 16 per cent 
Wedgwood would have had to 
pay in the UK would have been 
twice as much as the company 
considered worth while for such 
expenditure. So capital invest- 
ment has been cut to 
£1.5m-£2m from the £4L5m-£5m 
annual rate that would have 
been justified on the usual cal- 
culation of fixing capital invest- 
ment at 1} times the rate of 
capital depreciation, - 


Four-day 

week 


for a year 


JONES ' AND SHIPMAN, 
machine tool manufacturers 
of Leicester, reduced its 
workforce from 1.550 lo 
IJL50 in -1981 at a net cost to 
the - company - of £600,000. 
That ' will save it £2.4ra in 
wages a, year- But it is not 
regarded as a~godd bargain 
by a company whose UK order 
intake has dropped by 50 per 
cent, . . \ 

The workforce has been on 
a four-c&y week for a year 
and may well not get back to . 
normal working before .the 
autumn. 

-At the start of the reces- 
sion, the company survived 
on Its strong order book, but 
then decided to bnlld for 
stock to keep its skilled 
labour force together (like 
Dale Electric profiled yester- 
day). If built up a £2m stock 
of machines which are. now 
scattered in markets around 
the world waiting for buyers. 

- Profit margins': have been 
dr amati c all y reduced. Pre-tax 
margin^ have: -JiBen from 15 - 


per cent of sales a couple of 
years ago to only about 5 per 
cent now. Optimists in the 
company hope for 10 per cent 
this year— but that depends 
on orders that have not yet 
materialised. 

The company says it is 
very hard lu sell machine 
tools when customers them- 
selves have very small order 
books and when there are a 
great many good value 
second-hand machine tools on 
the market 

Capital, expenditure has 
been reduced from about 
£1.5m in a routine year to 
£100.000. but research and 
development faa s been kept 
going, helped by four Depart- 
ment of Industry' grants 
under the Microprocessor 
Applications Programme and 
the Product and Process 
Development Scheme which 
are providing £800,000 income 
over three years. 

- Apprentices, normally 
recruited at a rate of about 
40 a year, dropped to 10 last 
year and there may be .no 
new ones this year. 

There are no discernible, 
improvements In productivity 
because of the continued . 
four-day week, which may 
also sour labour relations 
soon. 


Innovation 


Undermined 


The agreement must come as 
a tremendous relief to the Social 
Democratic-Free Democratic 
coalition Government of Herr 
Helmut Schmidt. It has bad 
little to crow about of late. Divi- 
sions within fhe .coalition were 
made starkly evident during a 
protracted wrangle about a 
modest- reflation programme, 
now adopted. Matters have been 
made worse by the. uproar 
caused when it became known 
that the public prosecutor is in- 
vestigating accusations— all of 
them staunchly denied and as 
yet unproven — that several 
ministers and high officials 
accepted donations for party 
funds in return for giving tax 
concessions to individual busi- 
nesses. . . 

These events undermined the 
reputation of West Germany as 
a country that is both efficient 
and well run. Against that 
background, the metalworkers’ 
settlement is of more than pass- 
ing significance. It appears to 
show that West Germany retains 
one of the main strengths that 
have for so long sustained its 
economy — the ability’ of labour 
2nd management to arrive at a 
consensus. 

More immediately, the con- 
tainment of labour costs will 
make it easier for the Bundes- 
bank to reduce interest rates. 
The need to do so has been 
pressed for some time by 
Chancellor Schmidt. But the 
Bundesbank is its own master 
in these matters and has moved 
only cautiously. 

Some of the facts assembled 
in its latest monthly report, 
taken together with _ the 
moderate wage round, imply 
that the bank may now feel that 
it has increased leeway. The re- 


The improvement has been 
achieved largely through higher 
exports to the oil producing 
countries. For 1982, the Bundes- 
bank also expects enhanced 
demand for German products 
from the industrialised 
countries of the West. Both 
points raise some questions. 
Recovery in the West is, as yet. 
only a hope. More important, 
the downward pressure on the 
world oil price may severely 
reduce Opec’s appetite for 
German industrial equipment. 

There also are doubts 
whether German industry has 
done enough to steel itself for 
the challenges of Japan and of 
Industrial innovation. One of 
the secrets of the German 
industrial resurgence after the 
War was the purchase of 
foreign, mainly American tech- 
nology, which was applied with 
characteristic attention to detail 
both in design and marketing. 

That strategy will be difficult 
to repeat. Much will therefore 
depend on homemade innova- 
tion. In that area things do 
not look too well. German 
excursions into computer tech- 
nology have not been especially 
successful; the nuclear industry 
is under a political cloud; and 
though there have been some 
successes in the development 
and application of robots. West 
Germany is not in the van of 
microchip technology. 


Men & Matters 


Credit Data 
in the red 


Though its shareholders are 
unlikely to see the joke, news 
that Credit Data, the country's 
second largest credit reference 
agency, has itself run out of 
credit has been greeted with a 
certain amount of ribaldry. 

The receivers have been 
called in to the Manchester- 
based company, founded by soli- 
citor Paul Brooks some 10 years 
ago. Financial problems have 
haunted the company since. 
Brooks paid £1 to take over the 
older and larger British Debt 
Services agency, together with 
its debts of nearly £2m. in 1976. 

The company's Stock Exchange 
listing was suspended the same 
year and. despite a short-lived 
return to profitability, another 
£lm was lost between 1978410. 

After a “speculative” rights 
issue of £1.26m considerable 
hope as well as £2m was 
invested in a new computer 
system in which to store its 
10m files on the credit ratings 


of potential customers of 
retailers, mail order houses 
and finance groups. A series 
of delays — even the electricity 
supply went on the blink — 
reduced Credit Data's share of 
a declining market as the 
recession hit consumer demand. 

The receivers, appointed on 
behalf of the company’s 
bankers, Barclays, have 
accepted, subject to contract, an 
offer from United Association 
for the Protection of Trade for 
CD’s reference agency business. 

If the deal goes through the 
non-profit seeking UAPT, with 
more than 16m files on its 
central register at Skelniersdale 
in Lancashire, will have a vir- 
tual monopoly in its field.* 

Whatever money the receivers 
may get from UAPT, they say, 
it is however, unlikely to be 
enough for any payment to be 
made to shareholders. 


road wb-ich had probably never 
seen so many customers before. 

The Scottish national flag 
drooped from the door and in- 
side. trinkets and plaid scarves 
were also on sale. 

Conservative Gerry Malone 
thoughtfully gave the breathless 
pack a chance to reorganise 
afterwards, waiting until the 
evening to enter the fray from a 
Victorian house near the uni- 
versity. 


Gaul list Mayor Jacques Chirac. 
Neither, incidentally, is planning 
to move himself. 


Top gear 


Economic move 


Cross country 


Imaginative 

These weaknesses need not 
be fatal. But remedying them 
will require both an entre- 
preneurial leap forward and 
money which many highly 
geared enterprises may not 
easily raise. Business con- 
fidence is not especially strong 
at this time, though industrial 
investment has, in fact, held up 
quite well. The new reflation 
programme is intended to sup- 
port it by offering investment 
premiums and by shifting more 
of the burden of taxation on to 
consumption. 

A basis there tore remains to 
make imaginative use of what 
all along has been a main asset 
of German industry: a highly 
skilled labour force, which, in 
general, has been moderately 
led. 


THE 

LABOUR 

PARTY 



“I hear they’re calling in 
Freddie Trueman!” 


Roy Jenkins appeared bathed in 
light for the opening of the 
Billhead by-election campaign 
yesterday— largely due to the 
fact that the Alliance candidate 
and bis team have been 
quartered in a derelict school 
cum social centre which is com- 
pletely boarded up. . 

Jenkins was not given much 
chance to illuminate his own 
views at the first press confer- 
ence. Reporters had to scurry off 
to the Labour Party’s conference 
which started 30 minutes later, 
two miles away. 

David Wiseman waited for 
tbem sporting a large red 
rosette and a welcoming smile. 
Take the rosette off; take every- 
thing off Wiseman- save his smile 
and he weighs 19 st 6 lb. 

It will be interesting, re- 
marked an 11 st 6 lb reporter, 
dashing the two miles back to 
the Scottish Nationalists, to see 
who loses more weight in this 
campaign, politicians or press. 

The SNP's George Leslie was 
serving up his sentiments in a 
small shop in the Dunbarton 


Even Margaret Thatcher, I 
suspect would think twice about 
moving the Treasury from 
Whitehall tp Clapham Junction. 
But President Mitterrand has 
ordered an equivalent move in 
Paris for the Ministry of 
Economy and Finance. 

Ever since the death of 
Napoleon in, the administration 
has occupied the north wing of 
the Louvre. Now the 3,000 civil 
servants are being shifted to 
the unfashionable 12th arron- 
dlsemem behind the Gare . de 
Lyon. And the 40.000 square 
metres of palatial anterooms 
they occupy are to become part 
of the museum. 

The two ministers who hare 
offices there, Jacques Delors 
(Finance) and Laurent Fabius 
(Budget) wanted to move to tbe 
Quaa Branly in the shadow of 
file Eiffel Tower where some 
temporary buildings could have 
been turned into a more 
imposing edifice. That would 
have kept them within easy 
reach of the other main centres 
' Most top civil servants would 
hare preferred alternative sites 
nearer the smart residential 
areas in the west of Paris. But 
they did - not get their way 

The final decision to move fhe 
department further up the 
Seine in a bid to upgrade a part 
of the capital shunned until 
now by government and big 
business, reflects an unusual 
entente cordial* between Mitter- 
rand and his most powerful 
political enemy, the rieo- 


Not least of the headaches for 
the UJS. motor industry is that 
all the new " downsized ” 
(smaller) cars it is” rushing.- to 
produce are bringing with them 
a whole range of new compo- 
nents for dealers to stock. 

Tbe current estimate is that 
within five years there will be 
at least 20,000 more,- -or an. in- 
crease of around 20 per cent 
for the automotive aftermarket 
to handle. And once they have 
been introduced, they simply 
don’t go away. 

Richard Teasel, vice-president 
of research, and: development 
for Champion Spark Plug Com- 
pany, emphasises this point 
rather neatly. “The unfortunate 
fact is,” he says, “that once 
a new part is introduced, .it 
may be in the parts line 
literally for ever. For example, 
the Model *T’ Ford has not 
been made since May 1927, yet 
last year we made and sold 
17,469 spark plugs for these 
vehicles throughout the world.” 


Spare part 


From the hard-pressed U.S. 
motor industry, too, comes this 
story of. a Chrysler-PIymouth 
dealer in the Mid-West who 
hadn’t made a sale for a week. 

In desperation, and -being a 
religious sort of man, he threw 
himself onto his knees in the 
dust outside his showroom and 
raised his hands to the sky 
to plead: “ Oh God. if yon have 
any feeling at all for me, please, 
please make me a Japanese car 
dealer." 

There was a thunder' flash of 
a terrible kind and when the. 
smoke cleared -ha found he was 
a ChrysJer-Plymouth dealer . in 

Yokohama. 


Observer 



Industrial & 



Professional services include- 
• filiations': •Management 

•Rating •Investment 

•Builcfing •Agency and 

•Rent Reviews Development 



. '■ Chartered Surveyors 

. .1 Snow Hill; London EC1 A 2DL • 

Taj: ©fc 236300p.Teiex: 885485 

Birmingham Edinburgh' Leeds Manchester Brussels 


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^nancial Times Tuesday Masrcfa 9 1982 


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KGB puts down a marker 


By David- Satter in Moscow 


-HISTORIC changes are some* 
tim es ", ushered is by chance 
.events but no bit player ever 
seemed less likely to stumble 
oh wlhe stage of history than 
Mi. Boris Buryatia, a singer in 
fte choir of the Bolshoi Theatre 
and the reputed lover of Sirs 
Galina Qmrbanov. the daughter 
of Mr Leonid Brezhnev, the 
Soviet President 
• Mr Buryatia was arrested on 
January - 29 ■ after ■ -diamonds 
. taken in a major diamond theft 
were found, in his possession. 
But the outcome of his in- 
dividual case pales in signifi- 
cance compared to what his 
arrest appears to represent: a 
direct • and unprecqdented 
challenge to the Brezhnev 
leadership by the KGB. 

- in the almost 18..years since 
Mr Brezhnev and Mr Alexei 
Kosygin, the late Soviet Prime 
Minister, took power, such 
challenges to the party leader- 
ship from any quarter have 
been exceedingly rare and there 
is no expectation that this one 
will undermine- Mr. Brezhnev’s 
political strength. 

If anything. Mr Brezhnev's 
political hold is believed to have 
been tightened with the appoint- 
ment of his long-time associate, 
Mr Nikolai ..Tikhonov, . to 
succeed Mr Kosygin as Prime 
Minister and the positioning of 
Mr Konstantin Chernenko to 
take over as chief party ideolo- 
gist following the death in 
January of Mr -Mikh ail Suslov. 

The arrest of Mr Buryatia, 
however, is important because 
the KGB/ the army and the 
party apparatus are the three 
groups which will determine 
the Soviet succession. The 
readiness of the KGB, following 
the death of Mr Suslov, . to 
ignore the expressed wishes of 
the party apparatus and arrest 
Mr Buryatia was the first crack 
in a previously monolithic 
system aud it suggests the sides 
have finally begun positioning 
themselves for the future 
struggle for power. 

The KGB is under written 
instructions not to arrest any 
high party official or member 
of his family, without -the 
Central Committee's authorisa- 
tion but -Mr Semyon Tsvigun, 
the deputy head of the KGB, 
approved -the arrest of Mr 
Buryatia without consultation 
apparently -because he did not 
regard Mr Buryatia as a mem- 
ber of Mr Brezhnev's family. 

According to sources who 
have been reliable in the past, 


Mr Suslov was enraged over 
the order to arrest Mr Buryatia, 
apparently quashed it, and 
told Mr Tsvigua that he was 
finished for Tnairingr such a 
mistake and he had nothing 
left to do but to kill himself. 
Mr Tsvigun committed suicide 
and Mr Suslov suffered a stroke 
and died a short time later. 

This version of .events is 
consistent with the system of 
political protection as it has 
evolved flu the Br ezhne v era. 
Although an' ascetic himself, 
Mr Suslov was believed to have 
sought to protect the party 
elite and to have opposed the 
preferring of criminal charges 
a ga in st any party official above 
the rank of oblast (regional) 
first secretary. 

Mr Alexander Ishkov, the 
Soviet Minister of Fisheries, 
was never charged in a multi- 
million dollar caviar exporting 
swindle in which his deputy 
ministers were arrested and 
the entire leadership of the 
ministry was believed to have 
been involved. In the mid- 
1970s, Mr Eduard Mzhvanadze, 
the former first secretary in 
Georgia, was removed from his 
post but never tried for massive 
speculation in diamonds and 
hard currency. 

-What was unprecedented in 
the case of Mr Buryatia was not 
that Mr Buryatia had long 
thought himself to be protected 
but rather that the KGB felt 
the death of Mr Suslov under- 
mined the- authority on which 
his protection had been based: 
By arresting Mr Buryatia on 
the day of Mr Buslov's funeral, 
the KGB was also signalling 
that corruption will almost 
certainly be an issue in the 
power -struggle to come. 

The Brezhnev era, which is 
now drawing to a <dose, has 
witnessed the longest period of 
political and economic stability 
in Soviet history. When the 
Brezhnev-Kosygin u collective 
leadership” came to power in 
1964, it sought to eliminate the. 
abrupt changes in policy and 
high turnover of party cadres 
that had characterised the 
Khsushchev era. Having in- 
herited the party apparatus 
which Mr Khrushchev estab- 
lished, Mr Brezhnev won party 
leaders over by guaranteeing 
them unprecedented job 
security. 

In almost 18 years, there 
have been only seven demotions 
from tiie ruling Politburo and 
in only one case, that of Hr 




m iSSfK. 



KONSTANTIN GHEBNENKO 
no personal base of authority 


LEONID BREZHNEV 
hold may have been 
strengthened 


Pyotr Shelest, the former 
Ukrainian party leader, was the 
demotion believed to have 
stemmed from a difference over 
policy. Mr Shelest was said to 
have opposed the visit of U.S. 
President Richard Nixon to 
Moscow in 1972, following the 
mining of Haiphong Harbour. 

In general, those who bowed 
to tiie collective will retained 
their posts and what was tree 
for the Politburo where the 
average age rose to almost 70 
and the SI9-member Central 
Committee where it crept up to 
almost 65 was also true at every 
level of the party hierarchy all 
over the country. The im- 
mobility all but blocked possi- 
bilities for the promotion of 
younger men. 

Now death is beginning to 
claim leading members of the 
Soviet hierarchy and it might 
seem that the main centres of 
Soviet power— the party appa- 
ratus, the army and the KGB — 
would seek to deride on a 
pattern for the country’s future. 
The promotion of Mr Cher- - 
nenko, Mr -Brezhnev’s personal 
aide, following the death of Mr 
Suslov; however, is a sign that 
the party apparatus, for its 
part, seems to have no plan for 
the future except to prolong 
the present The KGB’s arrest 
of Mr Buryatia -may have been 
the symbolic assertion of their 
right- to a future say. 

Mr Chernenko has no per- 


sonal base of authority but owes 
his career entirely to the 
patronage of Mr Brezhnev. The 
two men met in the early 1950s 
when Mr Brezhnev was the 
party boss in Moldavia and Mr 
Chernenko was in charge of 
propaganda in the republic. Mr 
Chernenko’s career has pro- 
gressed with Mr Brezhnev’s 
ever since. 

Mr Chernenko was already 
Mr Brezhnev’s personal aide in 
1960 when Mr Brezhnev was 
chairman of the Presidium of 
the Supreme Soviet, a largely 
ceremonial post, and after Mr 
Brezhnev became party leader 
in 1964, Mr Chernenko became 
bead of the “General Depart- 
ment” of the Central Commit- 
tee. Mr Brezhnev and Mr 
Chernenko began to work so 
closely together that Soviet 
officials .who were unable to 
see Mr Brezhnev raised import- 
ant problems with Mr Cher- 
nenko instead. 

In 1976, Mr Chernenko be- 
came a party secretary and two 
years later, a full-voting Polit- 
buro member despite his lack 
of an independent base of 
power. At the 26th Communist 
Party Congress he was listed 
in the order of party secre- 
taries behind Mr Brezhnev, Mr 
Suslov. and Mr Andrei Kiri- 
lenko. the top party official for 
economic ana industrial policy. 

Since the death of Mr Suslov. 
Mr Chernenko has become the 


obvious choice of the party 
apparatus to succeed Mr 
Brezhnev. Editors of news- 
papers and journals and other 
• officials in the ideological 
sphere have been told to refer 
all questions winch require 
authorisation from the Polit- 
buro to Mr Chernenko, a sign 
that he is likely- to be confirmed 
as the Soviet Union’s new chief 
ideologue at the next Central 
Committee plenum this month. 

Mr Chernenko, as the chief 
Soviet ideologist, will have 
greatly strengthened bis posi- 
tion in the post-Brezhnev com- 
petition I because for the first 
time be will have a group of 
organisations under bis direct 
control and he can fill the most 
important jobs with his own 
appointees; 

The Brezhnev era brought 
stability to a society exhausted 
by constant change but it also 
frustrated the ambitions of 
thousands of party careerists 
anxious to get ahead. 

The combination of a lack 
of upward mobility end un- 
accustomed job security during 
the Brezhnev era bred arro- 
gance end a tendency toward 
the abuse of power, which was. 
exemplified in the behaviour of 
Mr Buryatia, who was known 
in Moscow .by bis green Mer- 
cedes, his mink coats and the 
boast that be was above the 
fe.w« 

Against this background, it is 
by no means certain that even 
with the Brezhnev’s groups 
backing. Mr Chernenko can 
hold on to power if, in the 
immediate aftermath of Mr 
BrezhneVs death, he is able to 
gain it 

Mr Khruschev used deStalin- 
isatson to rid himself of political 
rivals and if the younger men 
in the party apparatus in 
alliance with the army or the 
KGB decide . to contest Mr 
Chernenko's claim to power, 
Mr Buryatia’s arrest suggests 
that one of the ways in which 
they will probably do so is by 
levelling charges of corruption 
against the old ruling elite. 

The forces likely to oppose 
the accession of Mr Chernenko 
would almost certainly have to 
rally around one of the exist- 
ing Politburo member? be- 
cause only a Politburo member 
would have a broad enough 
base to malm a bid for power a 
plausible possibility. Only a 
handful of the existing Polit- 
buro members, however, are 
beSeved to stand any real 


chance of acceding to power. 

Mr Nikolai Tikhonov, the 
Prime Minister, Sir Vladimir 
Shcherbitsky. the Ukrainian 
party leader, and Mr Diiunuk- 
hamed Kunaev, the Kazakhstan 
party leader, are all thought, 
like Mr Chernenko, to be the 
riients of Mr Brezhnev and un- 
likely to challenge Mr 
Chernenko In a struggle for 
power. 

• Mr Arvid Felsche. st S3, is 
considered too old to succeed 
Mr Brezhnev and Mr Romanov, 
the Leningrad leader, although 
a possibility, is felt to be han- 
dicapped because his "power 
base lies outside of Moscow. 
Mr Andrei Gromyko, the 
Foreign Minister, is probably 
too valuable as a specialist in 
foreign affairs. This leaves four 
plausible alternatives to Mr 
Chernenko — - Mr Kirilenko. Mr 
Viktor Grishin, the head of the 
Moscow party organisation, Mr 
Dmitri Ustinov, the Defence 
Minister, and Mr Yuri 
Andropov, the head of the KGB. 

Until recently, Mr Kirilenko 
who was in charge of the 
making of economic policy for 
the party and occasionally depu- 
tised for Mr Brezhnev was con- 
sidered the strongest candidate 
to succeed him but Mr 
Kirilenko's influence appears to 
be fading and he has been less 
prominent in public in recent 
months. Mr Kirilenko, at 75, 
is also three months oider than 
Mr Brezhnev and may now be 
too old to succeed him. 

Many analysts believe that 
Mr Chernenko could ultimately 
be opposed by Mr Grishin, a 
colourless man about whom 
little is known besides the fact 
that he became the Moscow 
party boss in 1967 after spend- 
ing his early career in the Soviet 
trade union movement. He 
would take over power as very 
much of an unknown quantity. 

The conventional wisdom is 
that neither Mr Ustinov nor Mr 
Andropov could achieve the 
leadership of the party because 
although the army and the KGB 
are the two prints pa] instru- 
ments of power in the country, 
the party has always guarded 
against their potential domina- 
tion. 

Whoever emerges as the vic- 
tor may do so by winning the 
goodwill of Mr Ustinov or Mr 
Andropov, This is one of the 
reasons why the KGB, in the 
wake of the death of Mr Suslov, 
(had the self-confidence to 
arrest Mr Buryatia. 


Lombard 

Britain’s tactics 
in the EEC 

By John Wyles in Brussels 


THE OUTCOME of President 
Mitterrand’s recent visit to 
Rome raises some interesting 
questions, if not doubts, about 
the British Government's tactics 
on the EEC budget issue. Presi- 
dent Mitterrand’s Government, 
it should be recalled, has done 
its best to poison relations with 
Rome by shutting out imports 
of cheap Italian wine. But after 
a day and a-balf in Home with 
a clutch of Ministers trailing 
behind him; he had the Italians 
eating out of his hand. More 
importantly, he left them highly 
sensitive to the wisdom of 
France’s view on the need to 
make the minimum concessions 
to the UK on the budget 
M Mitterrand's trip to Rome 
followed immediately upon the 
Franco-German summit in Paris 
which built on the previous 
nine (yes, nine since last June) 
meetings with Chancellor 
Schmidt in restoring harmony 
and effectiveness to the Paris- 
Bonn relationship. It also left 
the Germans closer to sharing 
the French view that ihc UK’s 
budget demands are excessive 
and likely to trigger an undesir- 
able and very serious conflict 


Confident 


Meanwhile, what has British 
diplomacy been doing? 

Lord Carrington gave a speech 
in Hamburg recently talking of 
the need for “patience, toler- 
ance and restraint.” and Mrs 
Thatcher is likely to have one 
of her two bilateral annual 
meetings with Chancellor 
Schmidt before the EEC sum- 
mit on March 29-30. Mainly, 
however, the British seem to 
be content to sit in their tents 
polishing their armour. 

Mrs Thatcher is passive while 
President Mitterrand is active 
because she believes that she 
has the whip-hand over Paris. 
France, the reasoning in 'While- 
ball goes, needs an increase in 
EEC common farm prices far 
more urgently than the UK; but 
the French will run into a 
British stonewall unless they 
underwrite a budget deal 
acceptable to Mrs Thatcher. 
Paris is expected, therefore, to 
clear the way, for a four- or five- 
year limitation on Britain’s pay- 
ments to Brussels, as the pre- 
vious French government did 
in May 1980 when the temporary 
two-year arrangement was nego- 
tiated. 


But it is just possible that the • 
British may be taking too much 
for granted this time. Among 
other things it should be remem- 
bered that dies' are dealing with 
a different French President 
who, as Socialist Party leader, 
bitterly criticised his predecessor 
for making the 19S0 agreement. , 
Suppose that this French 
government will not give Mrs 
Thatcher satisfaction, suppose it 
tries to force through a farm 
price increase on a majority 
vote, suppose even that it resorts 
to national measures to give its 
farmers a price increase? 

Then France will be respon- 
sible for gravely disrupting the 
Community, say the British, 
confident that they cannot be , 
steamrollered by a majority 
vote on farm prices and that ' 
French national measures 
would be illegal. Quite so. but i 
who would be politically l 
isolated in the Community anil 
whose standing would suffer 
most? Not necessarily France 
and the French, particularly 
after M. Mitterrand's la tot 
efforts. France can get away 
with more in the Community 
for many reasons, nor all of 
which can be countered by the 
British. But if tin- UK is 
isolated on the budget ir 
will be partly because London 
has failed to put in the greater 
effort which is needed to huifd 
alliances among the Ten. 


An idea 


Yet last spring the British i 
floated an idea which could 
have mobilised several others, 1 
led by Italy, and which might 
have put a different complexion : 
on the budget negotiations. The 
idea was to aim for a more 
genuinely redistributive EEC 
budget which would transfer 
wealth from richer to poorer 
member states. The Community 
may well not survive without 
embracing such a principle 
which would not only ultimately 
benefit the British, but also 
offer greater gains to Ireland, 
Italy and Greece. But Britain 
campaigned for its own proposi- 
tion with about as much hope 
and vigour as a Trotskyist seek- 
ing the stockbroker vote. 

The UK once had a tradition 
of forging continental alliances 
in order to preserve a balance 
of power. She ought to revive it. 





Letters to the Editor 

Trade unions and the amendment on legal immunity 


From the Director General 
Engineering Employers’ 
Federation 

Sir,— You report (March 4) 
that a number of employer 
organisations support a back- 
bench amendment . to the 
Employment Bill which would 
withdraw legal immunity from 
unions which did not exhaust 
the agreed disputes procedures 
before taking strike action. 

Although attaching great im- 
portance to the observance of 
agreed disputes procedures, the 
Engineering Employers' Fed- 
eration js not one of the em- 
ployes - organisations support- 
ing this amendment. Indeed, 
in ■ responding • to the Green 
Paper on trade unions immuni- 
ties. the EEF pointed out that 
it would be counter-productive 
to fasten legal consequences to 
the operation of procedure 
agreements. 

Since the 1960s the reform of 
industrial procedure agreements 
has deliberately followed the 
path of converting the old 
formalistic procedures (which 
were, indeed, very often 


breached) into less formal and 
more convenient ways of hand- 
ling the business of bargaining. 
Such agreements would not 
easily bear the weight of legal 
inquiry as to whether in a par- 
ticular case one side of the bar- 
gaining table or the other had 
been in breach of procedure or 
whether a breach otf procedure 
at some point by one party had 
been condoned by the other. 
Another unwelcome conse- 
quence of removing legal 
immunit y from breaches of pro- 
cedure agreements might be 
that an issue arising between 
employees, and their employer 
would be hurried through the 
procedural stages simply to 
avoid tiie risk of legal liability, 
rather than trying to resolve the 
issue; real negotiations would 
then only begin after the proce- 
dure had* been exhausted, and 
under the threat of immediate 
industrial action. Finally, 
attaching legal consequences to 
the breach of procedure agree- 
ments could encourage unions 
to withdraw from those agree- 
ments — a development unlikely 
to improve industrial relations. 


.Yon also report that Mr 
Tebbit does not seem attracted 
to the concept of withdrawing 
legal immunity from unions 
which do not exhaust the agreed 
disputes procedure before tak- 
ing strike action; mid. I believe 
that in this he will be supported 
by the majority of employers 
who are actually involved in 
bargaining. Reform of British 
industrial relations needs to 
concentrate on reducing the fre- 
quency and seventy of strikes. 
For the reasons given, I do not 
think that legal penalties for 
the non-observance of volun- 
tary procedures will help attain 
this objective. Many of the most 
nationally damaging strikes 
have been perfectly constitu- 
tional, in the sense that they 
have only taken place after the 
issue concerned has 'been -pro- 
perty progressed through proce- 
dure. Attaching legal conse- 
quences to the mechanics of 
procedure aims at the wrong 
target, and wfil not improve in- 
dustrial relations. 

Dr J. S. McFarlane, 

Broadway Home,. 

Tathm Street, SW1, 


The Press in 
Nicaragua 

From the Nicaraguan 
Ambassador 

Sir,— I refer to the report 
titled “Nicaraguan newspaper 
becomes thorn in Sandinistas’ 
•side” (February 24). 

Two years ago the chief 
editor, and 80 per cent of the 
staff left tiie offices of La Prensa 
to form a new journal called 
" Nuevo piano in which the 
journalistic spirit of Dr 
Chamorro is carried on. La 
Pre nsa - as it flow stand s i s 
nothing more than an instru- 
ment at the service of those 
who for a variety of reasons are 
trying to label the Nicaraguan 
revolution, perhaps looking for 
some way to. dispose of it. by 
calling it a copy of the Cuba 
revolution and in this way they 
are being -subservient to outside 
power and internal manipula- 
tion. 

Precisely because of the free- 
dom the Sandinista popular 
revolution the new La_ Prensa 
is not shut down, lou will 
recall that in July 19S1 half a 
million people out of a country 
of SL5m people, requested their 
government to shut down La 
Prensa. - Also: the majority of 
Nicaraguans are wary of the 
hew La Prensa because it 
advocates conditional assistance 
to its Government from the 
Reagan administration. 

Nicaragua has a "Press code 
and it is because of violations 
of this code that the new La 
PrensaL or either of the other 


two newspapers could be liable 
to be sanctioned. 

Definitely the new La Prensa 
has a rate to play in the revolu- 
tion and precisely because of it 
my Government goes against 
the wishes of half a million 
people and encourages the 
paper to be at tbe service of 
the community rather than, to 
the destabilising forces — 
assassins of weak nations. 
Francisco d’Escoto. 

S, Gloucester Road* SW7. 

Europe’s pulp 
prices 

From the Director General, 
British Paper and Board 
Industry Federation 

Sir,— I read; with great 
interest the article (February 
18) concerning movements in 
the mice of wood pulp for 
paper-making. I thought you 
might like, two supplementary 
comments in relation to toe da 
market as opposed to the Euro- 
pean market in general. 

It is not strictly correct to 
say, as far as the UK is con- 
cerned, that tbe puip price has 
fallen. Although list pnees of 
bleached long-fibred pulp nay 
have risen at roe. end_ of 
the general view is that buyers 
anticipated what bas now 
happened and did not actuary 
purchase at the higher figure. 
It would therefore be more 
accurate to say that a projected 
price rise has not actually been 
applied. 

Much more importantly, the 


sterling price of. ptilp. did rise 
last year very sharply and re- 
mains today at prices never 
seen before— ptzrefy because of 
the exchange rate" variation 
from 52^0-82.40 to the pound 
in 1980 to $1.75-$L90 in 1981- 
1982. Since wood pulp is sold 
in doRars, this fafl in sterling 
value against the dollar in- 
creased the sterling price of 
bleached - northern softwood 
pulp- from approximately £225 
per tonne to nearly £300.. 

J. H. Adams. 

The British Paper, and Board 
Industry Federation, 

3, Plough Place, 

Fetter Lane, EC4. . 

Going beyond 
Glasgow 

From Mr K Cox 

Sir,— Glasgow may not be the 
end of the road (Samuel Brit- 
tan, Lombard, March 1) as 
motorway links now make it 
possible to reach Inverness 
(via Stirling). Further north 
will be possible .when, the 
Kessock bridge is completed. 

The financial institutions in 
Glasgow -will consider it an 
honour, to explain to southern 
pundits the other . routes 
around the country, not neces- 
sarily -covered by the Auto- 
mobile Association, or .the 
Treasury. 

Kenneth Cox. 

19, Clyde&hore.Rcadi. 
Dumbarton. 


Massive devaluation 
required 

From Messrs A. Mitchell MP, 

B. Gould. J. Mills and S. 

Stewart. 

Sir,— In. the .year - ended 
in the first quarter of 
2973 manufacturing output rose 
18 per cent, "output per person 
15 per cent and output per 
operative hour 11- per cent Tbe 
increase of 7 per cent in out- 
put per person hour in the past 
year could well be accounted 
for solely by the effect of clos- 
ures on the average; and the 
price this tune has been rising 
unemployment, higher taxation! 
a fall in living standards and a 
permanent reduction in our 
rate of growth. . . . 

Our problems will not be 
solved in. this decade unless 
there is a massive devaluation. 
The boost to manufacturing 
profits would then enable the 
Government to save £l0tra-15bn 
by getting rid of capital allow- 
ances and stock relief, solving 
many tax demarcation . prob- 
lems at a stroke. 

The time has came to replace 
compyter models by a tittle 
common sense. This would tell 
us that real costs fail as output 
increases and that the margin 
of . spare capacity is now so 
great that output could be in- 
creased by far more- than is 
required to compensate for the 
deterioration in the terms of 
trade. The obstacles are poli- 
tical, - not economic. 

The need is for a stabilisation 
policy which would halt the rise 
■ in prices virtually overnight by 
compensating for the adverse 
effects of devaluation on costs. 
The massive transfer of labour 
and capital to manufacturing 
required could be achieved on 
a- noo-inflationary bass by 
remitting the whole of the 
national insurance charges for 
both employers and employed 
in manufacturing industry. This 
would cost £6bn. Other price 
and income stabilisation meas- 
ures would cost about £12bn 
and employment steadies 
about £3bn. - . 

. A recession is caused by too 
much saving and Qan only be 
ended by increased spending. 
What better way than give 
everyone money to spend and 
ensure through a competitive 
exchange rate that the spending 
is on British goods? 

There are those who will say 
it cannot be done; The wish in 
most cases is father .to the 
thought It can be done, but it 
means reimposing control on 
the movement of capital and 
relying on, eg., differential ' re- 
serve -requirements to restrict 
asset . speculation. . ' Half 
measures will not create S,000. 
jobs a day for four years. 
Austin Mitchell. 

Bryan Gould, 

John MfHs_ 

Shaun Stewart 

House of Commons . SWT. 



f YOU WANTED TO CONTROL 

IS WESTS SUWUNES, 

mEREMADYOUm/ETO 

mmmmsT? 


You don't need a diploma in military strata 
to puttwo-and-two togethen Each month about 
2^00 ships pass SouthAfrica’s coastmost ea 
route for the West 

. Iheycany80% of NATO countries’ oil 
soppliesand 70% ofthdr strategicminerals. 

' Indeed, the Republic of South Africa itself is 
toe only stable coimtiy outside the Communist 
BlocwitMargereserves of chrome, platinum, 
manganese and : vanaditinL 

Without reliable supplies the West could not 
manufacture computers, machine 


SouthAfrica 

Further information can be obtained from 
. TteDiradorof lnformafiozi. South African Embassy? 
South AfncaHouse, LondonWC2N 5DR 


tools, aero engines,gearboxes,TVs, drillingbits and 
defensive armaments. 

No wonder South Africa hasbeen called the 
Tersian Gulf of strategic minerals!So you can see 
how the stability of the West and the stability of 
South Africa are linked. 

Yet the mandatory aims embargo placed onfhe 
Republic by the U.N. means South Africa is-imable 
to patrol the strategically important sea lanes 
around the Cape. On the other hand, the build tip 
of theSovietnaval presence in thelndian Ocean is 
nothinderedby such embargoes. 


i 






■iV. -yCZ^V- 


Companies and Markets 


UK COMPANY NEWS 


- Financial Ttoes; : 


BTR ahead to £90m with 
boost from overseas side 


Invergordon 
down but 
payout held 


Reduced demand leads to 
lower results at AAH 


= *i 


recovery 


BOLSTERED BY overseas npe ra- 
tions and achieved on a 25 per 
cent sales rise, taxable profits of 
BTR, the energy, eng i nee n ns. 
materials handling, plastics and 
rubber group, improved 28 per 
cent from £70.3m to £90. lm in 
1981. 

Tax took £27m (23.1m > and 

minority profits a further £6ni 
(£4m). which left stated earn- 
rags per 25p share some 21 per 
cent better at £23.9 p (19.7p 
adjusted for last year's scrip 
and rights issues). From these 
the final dividend is 4.5p nei. 
effectively lifting rhe total pay- 
ment by around 22 per cent from 
7.167p to S.7/p on the increased 
capital. 

In reviewing these results, the 
directors say that international 
operations produced a higher 
contribution but there was a 
further decline in UK profits. 

This fall amounted to around 
£4m. after taking out additional 
contributions from Huvck Cnr- 
pnrn t ion a nd Serck. However, 
while the directors recognise 
that the situation int he UK 
remains difficult, they emphasise 
that the reduction in profits Front 
that source would have been 
greater without rhe action taken 
on factory closures and 
reorganisation during the year. 

Gut of a total increase of 
£24.4m, which gave operating 
profits of £97.4m. "organic growth 
for £5.5m after allowing for rhe 
UK downturn. acquisitions 
realised a £5.7m advance, infla- 
tion accounted for fS.2nt and 
favourable exchange fluctuations 
amounted to £5m. 

A rise in other income added a 
further £6.3m <£4.2m) to pre-tax 
profits, bm finance costs absorbed 
£13.fim compared to £6.9tn. Below 
the line there were extraordinary 
debits this lime of £4.1m acainsl 


DIVIDENDS ANNOUNCED 


TURNOVER and profits of 
' Invergordon Distillers (Hold- 


A DOWNTURN io demand is £S.69m on turnover of £36(L27m. 9 comment 


iflgs) were both down for 1981 reflected" V reduced pre-tax in the nine months, saysMr h^nw of nrofits f ^^^‘nflvv^-elt^caTOTo.. i.. 

but the dividend is maintained profits at A'TH Holdings for the Pybus, the group has disposed of, AAff« 14-yw history P lhe?reco*2i - 


IN THE first half » Tfceetaber 
31 19SI, George S etaries, 
electrical engineer *^ no an*. 


British Vita 


Federated Land .... 

Galliford 

Grocnfielils Leisure 

Invergordon 

IOnt Enterprises ... 


Mu rray filemievon 
Parker Knoll 


Sheldon Jones 
BTR 



Date 

Corre- 

Total 

Total 

Current 

of ponding 

for 

last 

payment 

payment 

div. 

year 

year 

..inL 2.1 

March 31 

191* 

— 

4.7* 

0.3^ 

— 

— 

0.3 

— 


May 7 

2.fi 

5.4 

5.2 

e ... 1.4 

May 11 

1.02 

1.97 

1.47 

2.59 

— 

225 

3.69 

3.35 

. int. 0.7 

April 1 

0.5fi* 

— 

2.5“ 

■ ... 0.5 

April 30 

1.31 

05 

2.15 

2.5. 

June 2 

25 

4 

4 

4 



4 

4 

4 

g ... 1.13 

May 21 

— 

2.25 

— 

int. 0.8 

— 

0.9 

— 

2.7 

..inL 2.5 

April 16 

2.5 

_ 

7.5 

..int. 6 

May 12 

4 

— 

16.52 

..int. 1.25 

April .15 

— 

- 1 

— 

4.5t 

May 21 

3.87* 

8.75t 

7.17“ 


out the diviaeno is maintained profits at A'TH Holdings for the Fybus, tne group uwpwcu w. • - — - ^ 

at 4p net per 25p share with a nine months to December 31, or closed, five businesses which growth lias sputteredto abaJL -dn«^. ^ second l5l£ of :: 

same-again final of 2.5p. 1951, gays Mr W. Pybus. chair- were either outside the mam The company has been seeking it made in ui -^*>1 -■/■ 

Following a fall at midway J£n The taxable surplus stream of group actmties ,or volume Wins in its rwitfj - 

um £2.1 Im to fl.Sltn, taxable slipped from £6.49m to £5.54m making an inadequate return on diverse sectors and this has 


profits finished the December 31 D n turnover £39. 56m higher at capital. 


year behind at £3.51m, compared £300.65m. “ On the other hand,” he s 

with £4.37m. Turnover declined „ Wo nahiraUv dl*. “we have continued as m 

by £3.SBm to £20.78m. an V* d - '^savs Mr SbJs to expand vigorously £ 

Last September, in their appotnfetf, says Mr Fyous Tiiat .. wh i c h we are kx 


uivvrse seciora - ■ 

meant an easing of the trading Turnover for the pexioti ran 


Last September. in their 
interim statement, the directors 


appointed," says Mr Pyonsythat fl^fds”in "which we are know- current slump, with, the fckcep- interim divided » i 
Pf 1 *!"., -.y a g- °LJ5 p wfS5? ledeeable." - lion of. -solid fuel. This division stepped up fra» }® J 


mifl l m 0 Ld If men l, UIT 

said that if the poor trading ?*“£■> 

conditions persisted. they tn'ronni^a^-edurrinn^nf 

expected little improvement in 01 

the rate of profit For the rest of appnxmately 147 per cent 


illy Increasing profits.*«before ^^eakdown of tarnoverand ha? “eS^cled ’ by^tr’more Last'year'a . total :or 

n' trading profits hy division shows: buoyant, industrial and export .Mid . from ^ roS ^,- of 

sion to repon.a reduction of £160 ^4m (£l40.46m), .markets. The mercurial nature flTSm (£2.4Sm). ■ /. . 

innately 147 per cent (£3 .e6m); oil £42.S3m of AAITs pharmaceutical results The P rfrta * SSUfS 


the year. mr ryuu* iuu uie XWO.UW iiijjww;- snows urn. a uulc *u uic ' 2 ‘ VoT<wiIji •, cr rime there w» 

Profit for 1BS1 was after reduction reflects the downturn builders’ supplies £3L74m counting war in that sector, has of. £31.ouo Trr 08 ! non 

. et nc „r v . coco Ann • rcroomv. n„i ' tha mm- interest Charges or .uaww 1 . wU 


i-im (£3.66m); w« - x-ta.oaiu m.JMJis piwnaBceuHM* i«“<» wnn HerwOc 

( £32.42iii ) , ^ sfaows that «1 S fl«wiaat > timiTSeTe wore 1 


Xb e pre-tax profits included 


interest charges of £l.Q5m. com- of demand and consequent con- 


pared with £1.14m. and subject traction of margins which have pharmaceutical 

m .e P i no AA/I /PlOf PlAfV \ L*a.niln iiFTn MaJ xfl 44 b a . n>. a an .. \ OfW 


(£30'J6m). ■ £9S2,000 (£f^9m); yet to he called. BuL the com- interest . cha^^f 

pharmaceutical supplies £39^5m pany points to a growing shake- tax took £523 0W (£177^) 


Dividends shown .pence per share net except where otherwise stated- 
• Equivalent after allowing fnr scrip issue. f On capital 
increased by rights and/or acquisition issues, t Total forecast of 3.5p. 


to lax of £499.000 (£436.000). heavily affected all -the group’s (£3478m), £872,000 (filJiJlJoO: out in this area Which Should 


Earnings per share are given activities, with the notable 
as 16.96p (20.17p) and the exception of solid fuel, which 


Dividends absorbed £257fl» 
iTi.OQO) leaving., retained 


engineering £5.97m (£a45m). help by simply eliminating some (£171,000) ©ran 

£50^000 (£^4,000); agricultural of the opposition on the battle- profits of £402,000 (iAa.owi. . 


amount, retained came through contributed .trading profits of supplies and services gL34m . ground. Net capital employed 


at £2.53ra. against £3.15m. 

On a current cost basis, the 


(£3 53m). £259,000 (£279,000); grew by some £15m during the 


credits of £1.2m and on a CCA 
basis, profits before tax totalled 
£Slm (£61. Sin). 

An analysis of histnrjc sales. 
£637.5m (£509.Sm). and operating 
(£310in) and £37.7m (£39.2m i. 
Western region £120.2m (£77.1m» 
and £29.5m (£lti.2in) and Eastern 
region £lKt.7m l£122.7m) and 
£25.2m (£17.6ni). Exchange 

fluctuations on turnover were 
124.3m (nil ). 

Apart from the UK. other 
European operations enjoyed in- 
creased sales and profits, the 
direct oik reporl. The 82 per cent 
imrpnvement in Western region 
profits was spread broadly across 
ail operations, (hey say. 

Shareholders' interests at the 
» ear-end showed a £39.im im- 
provement to £260. 6tn. while 
capital exepndilure during the 12 
months amounted to £75m, includ- 


ing £43m on acquisitions. 

The most notable of these was 
Serck. results of which have been 
consolidated for the three mouths 
nf rhe year in which they applied, 
while a report on the acquisition 
is awaited from the Monopolies 
and Mergers commission 

Bnrrnwings at the end of 19S1 
accounted for 30 per cent of funds 
employed, and net interest 
charges were covered 7.6 times 
by available profits. 

The directors note that early 
in the current year the world's 
economic climate appears less 
bright than For some time. Never 
theless. they emphasise that the 
uncertainties in the year ahead 
will hr faced with the same atti- 
Jude that has brought the group 
a long-term record of consistently 
better than average results. 

See Lex 


“However,” he - says, “we road haulage £9.44m (£8.75m), last financial year and it looks 


pre-tax figure is reduced to have succeeded In retaining our £482,000 (£627,000); mis cel- like the profit return this year 
£2. 56m (£2.77m). share of these highly competi- laneous £6-S4m (£465m) a loss will slump below 20 per cent. 


£2.56m (£2.77m). 

• comment 


tire markets. The quality and £308,000 (loss £35.000). 


the first drop below SO per cent 


basic strength of our businesses Taxable results were struck in .more .than five years. The 


The malt whisky glut continues, ensures their ability to take after interest charges were increased, dividend cheered, the 
and Invergordon is having to re- advantage of any upturn in the reduced from £1.73m to £L.31xn. market and the shares closed 

J. a -r ” - •' * in.. fn* tov me lnm, nnAhinluul of OAn - - a CCJI minf* 


strict production of fillings even economy. 


more than last year, when all The interim dividend b as been £1.75 zn (£ 2 . 11 m). 


The charge for tax was lower at unchanged at 90p. - ■ Assuming 


full-year results in line with 


Sheldon 
Jones up 
at midway 


four malt distilleries were shut effectively raised from 1.9115p After minority debits of £1.34m these figures, the shares trade on FOR THE 

for several months. There will be to 2.1p.. Earnings per 25p (£1.41m), and preference divi- a prospective, fully-taxed p/e of November 30 1881 snemoa 

no real recovery until the ordinary share are given as lfip dends of £56.000 (same), -attri- about 10,. which gains snpport anim al feeds s . u PP u er winch 

l)lenders get their stocks into lower at 8.3p; In the last full butable profits emerged slightly from a prospective yield of 8.4 came to the Unlisted M cunr y 

balance with lower forecast year pre-tax profits stood at lower at £2J9m (£2Blm). : •" percent. Market last October, increased its. 


a prospective, fully-taxed p/e of November 30 1881 Sheldon Jaws, 
about 10, which gains support anim al feeds supplier which 


demand — which they cannot do 
quickly — but the turnrouud in 
grain spirit might be expected 
to come sooner, perhaps next 
year. Meanwhile, Invergordon 
has been able to rely increas- 
ingly on its own blended sales 
(largely export) and on distil- 
lation of neutral grain spirit, 
used for gin and vodka. The 
second half was a slight ini pro ve- 


per cent. 


British Sugar chief criticises 
Berisford’s financial position 


Market last October, in«y««d its. 
taxable surplus from £260JO9O lo 
£296,000 from turnover of £5.fflJtaL 
against £5.lSm- 
Tfae directors say that {a the 
second half so far. demand for 
the company's products has been 
well sustained, although opera- 
tional costs have inevitably beefl : 
influenced by exceptional 


Greenfields plunges deep into 
red but sees return to profits 


used for gin and vodka. The . weather conditions. 

SHs**! * a ” a S 8 " a ’d^“n ^uS h th!TrfoSS;7“ 0 nd “Safteulin* tod, «cludta* ‘sirGeSldS^Taccu^e p^’ioS ' 

birioric m^lKnie nf 16 5 tiln« finanoal position of 8. and W. British Sugar, Bensford’s 1981 Berisford of ” mediocre perform- S? hi?t Sid'Siat Bn?ow rier 

f^lySedSngfaJd^eldl JH *** ^ ^ ^ce - of -limited Jowledge 

mere 3.6 per cent. This repre- ho i d P Hrf^ 1 kmJc , jmw n W £4 I^ rp _, H nlK _ arim __ ®* capital Jintensive^ ^manufactur- Mine period in 198CL- 

sents an exacting valuation: holds a 40^ p« n 3}?. ftat ing mdustiy. • After six months ’tax e|-; 

Highland, which has a strong JJJJ * take ,n Brltlsh Sugar's British Sugar's dividends and .In Berisford s 1981 accounts, £127,000 (£111,000) earning pcf . 

branded side in addition to its eq c i f y ’roMirf nninta .vaj. share are given as 3.3p against v : 

fillings, yields a point more. Margulies. said that ^the results 3 D and there is an interim divi- . 

There is always speculation that 
Hawker Siddeley might decide to ", Jf 


THE RATE nf Insses acrelarated 
at Greenfields Leisure in the 
second half of the year to 
October 31 19S1. But the direc- 
tors of this retailer and whole- 
saler of leisurewear and camping 
equipment foresee a reversal of 
this trend, a return lo profits and 
hrgher dividends. 

For the 12 months under 
review, pre-tax losses totalled 
£l.S7m. compared with a mid- 
term deficit of £652.000 and a 
profit of £14.000 for the last full 
year. 

However, the direciors report 
that the low point in the trading 
setback now appears. to be well 
passed. Gtoss margins are being 
restored and results for the 
current year are showing a 
marked improvement. 

Where necessary and 
expedient, further disposals on 
uneconomic retail branches will 
be effected in order to reduce 
borrowings. The directors say 
they are confident that the down- 
turn experienced last year will 


lie reversed and that profits will 
he earned. 

It is also hoped (hat results 
For the current and'fulurc years 
will justify a return lo dividends 
approaching Tormer levels. For 
1980/81 the interim dividend was 
passed and the final payment *>F 
0.5p net. now declared, stands 
against last year’s total or 2.15p. 

Turnnver for iho year to 
October last showed Itllio change 
at £18.43m (£]S.4im and (he tax- 
able loss was striu-k after surplus 
on properly disposals 1298,000 
(nil I, interest fl.llm (£I.f>$m) 
and depreciation £649.000 

Following a lax charge of 
£262.000 (£88.000). but including 
extraordinary credits oF £l4S.nno 
(£34.000), the attributable 
balance turned round from a 
profit of £136.000 to a loss of 
£l.46m. 


• comment 


Caught off balance hy the 
recession while expanding, 
rapidly Greenfields Leisure has 


been retrenching in earnest to 
stem losses and defuse the high 
level of borrowing. By the end 
or last year some uneconomic 
shops had been sold, staffing 
halved and stocks weeded out. 
But debt, already at 67 per cent 
of equity funds, has jerked up 
sharply again, rising £lm to 
around £4.Sm. However, gross 
margins have gained from the 
better quality stocks profile, staff 
costs are down significantly and 
foreseen redundancy costs are 
almost all out of the way. Much 
improved current sales with the 
enhanced gross margins on 
higher volumes, are encouraging 
management in its forecast of a 

recovery to p rn fit at fulltime. A 
confidence that helped lift the 
share price off the bottom by 4p 
to 23p for a yield of 3.1 per cent 
from the cut payout. Further 
property sales are expected to 
ease borrowing hut real recovery 
prospects hinge on a lasting 
upturn in trade with the weather 
playing a big part- 


holders yesterday. £47m. “• 

Berisford holds a 40.02 . per Sir Gerald also argues that 
cent stake in British Sugar's British Sugar's dividends and 


sell the 76 ner cent stake -which ,u Ulc - Ycal «uy«uiuvi lvol ovtmviu a uununui^ iuac uj last year." 

it cont rols through Carton _ was “ mainly .due " to its treating $126m to $226m last year, British * . . in its last accounts British >ear ' 


whisky does seem a bit .incon- 
gruous iu that context — hut 
Hawker is unlikely to bale out 
at this stage of the cycle. 


Galliford profits steady 


Sugar set aside £1^215,000 for 
*• bid defence.” . 

At the British Sugar annual 
meeting in January, Sir Gerald 


SHEFFIELD TWISI 

The listing of the 5 per 


Blackwood 
Canada 
$2.25m loss 


^ . _ . i . ,, . . _ j. . ■ said -that British Sugar bad preference and 7i per &&: 

ALMOST unchanged pre-tax engaged in building and develop- several meetings with Berisford debenture stock of Shcffiidd 
profits were shown by Galliford ment,- civil engineering, heating since July 19817 and that he Twist Drill have been cancelled. 


for the six months to December and ventilating. 


31 19S1. The surplus this time 


expected -Berisford to make a Application to make specific 


engineering companies further bid for British Sugar bargains 


preference 


£1.39ra, compared with moved from the losses of last . jn July or 'some time after shares under rule 163 (2); may 


£1.3Sra, on turnover reduced year to a modest profit, says Mr. that - 

r— roc a. (H)A A ry n.li:#. 3 #PV- 1 ^ • • 


from £35.37m to £30.43m. 


Galliford. The contracting com- . 


be submitted. 


Turnover of Blackwood Hodge 


extreme wexther Pyles performed yell eon- 


■ UlIMJVtri Ul IflfllTUTOTU in»Ug r - CAUCIUC nwilici -rj- At,- TTT nrr .. rn 

(Canada). 74 per cenl-owDedsttb- eince December and the further ?„ eru J*. the increased Pressure 
sidiary of Blackwood Hodge, tightening up of the market on margms. 


improved from CS134.7Sm to caused by the large drop in UK The Choriey division made a 
CS140.39m for 1951. hut .the com- construction output in 1981, good recovery, adds Mr Galli- 
pany suffered a S4.B4m turn- will make it very difficult to ford, and the purchase of a 50 
round to a taxable loss of S2J5m achieve an increase in profit for per cent Interest- at the end of 
(Sim at current rates). the full year,” says Mr Peter the period In a Singapore-based 


BRAID GROUP 


MOTOR VEHICLE DISTRIBUTORS 


There was a tax credit for the Galliford, chairman. 


company will provide a vehicle 
to exploit the division’s 


period of 81.52m, compared with The interim dividend has to exploit the division’s 
a S52n.O0O charge, leaving the been lifted from an adjusted expertise in that part of the 
loss at S427.000, against a SI. 8 5m 0.5625p to 0.7p. Earnings per world. 

surplus previously. share moved ahead from 3.1Sp From trading profits of £2.05m 


surplus previously. share m 

Loss per share is ' given as to 3.28p. 
1“ cents (earnings of 77 cents). The | 


From trading profits of £2.05m 
(£2.07m) there • was a lower 


Results at a glance 

Year to 30th September 1 981 


. The profit achieved reflects charge for depreciation of 
the varied fortunes of the £664000 (£687,000). Corporation 



group's trading companies, says t ax was reduced to £562,000 
Mr Galliford. The group is (£578,000). . 


BPC omits 
preference 


ASSOCIATES DEAL 


L. Messel and Co. on March 
5 sold £100,000 Rio Tinto Zinc 
91 per cent convertible un- 


Tumover . 

Loss before taxation 
Profit retained 
Earnings per share 
Dividend per share 


1981 

£'000 

38,693 

(337) 

3 

(1.45p) 


1980 
£'000 
43,468 
(873) 
(986) 
(1 6.50p) 


British Printing and Omnranl- « ajred loan etock 1335/2000 « 
cations Corporation announced • • 


yesterday tihat it would not be RTZ /Tunnel — Kleinwort Ben- 


paying the dividends due on son as an associate of Tunnel 
April .1 in respect on the 4.2 per Holdings bought on behaJf -of 


cent preference shares, .the 4.2 discretionary . investment dieots 


per ceni ‘ A’ and ‘B’ prefer- on March 5 20,000 Tunnel U B” 


ence shares and the 5.25 per cent shares at 55Sp and 25,000 at 


'Press comment and the upward movement in our 
share price indicate that we are regarded as a recovery 
.situation. With this 1 do not demur. We are. Any 
difference in view between myself and thatef the 
investment analysts is one of timing." 

Denby Bamford CBE, 
Chairman 


preference shares. 



-» i 


The Nottingham Manufacturing 
Company p.l.c. 




. Salient points from the Annua/ Report for the year ended 
31st December 1987. 


To the Holders of 

FUJITSU FANUC LTD 


For an industrial company to make a 
profit, let alone grow, you have to do a lot 
more than talk of better times. 

BTR does. 

Our ultimate measure of management 
success is profit. For more than a decade 
we made it, and will continue to do so. The 
future of industry needs more than good 
ideas. It needs purpose, action and results. 

For the positive face of the 80s, 
turn to BTR. 


• Sales -£192,795,000. 

• Profit before taxation -£19,024,000 [1980 £15,O14,000L 

• Earnings per share 18.8p. - 

• Dividends of 4.5p per share covered 4.1 times by profit ' 
after taxation. 

• Capital expenditure on new buildings and plant 
amounted to £6,921 ,000. 

• Cash and Investments increased to £55,734,000. 

• Net assets— 114p per share: Liquid assets— 79p per 
share. 

• Hopeful for year of further progress. 


*16% Convertible Bonds 1996 

, . ' : NOTICE OF FSBB DISTRISUTioN OF SHARES 

V AND 

JUXTOSTSCENT OF CONVEBSION PRICE 


Bonds fZJ ™770 JapSS 
effecfave “ ^ ^ cl0 «‘ °* ****** 
- . • / . FUJITSU- FANUC LTD 

Dated: March 9, 1982 


M. J. H. Nightingale & Co. Limited 


WINTRUST PLC 


27/28-Lovac Lane London; EC3R 8EB 


INTERIM STATEMENT FOR SIX 
MONTHS TO 30th SEPTEMBER, 
‘ 1981 



That's BTR 


‘ 6 months 6 months . 12 months 

to 30th to 30th ' to3)st 

Sept. . Sept March 
1981 1980 1981 

. . £ ■£'■'■. £ 

Group profit before taxation 905,934 781,720 ' 1 ,723,068 
Estimated taxation 479,904 315,300 554,86+ 

Group profit after taxation 426,030 466,420 . 1,168^04 

★ Pre-tax profit at record level 

★ 2nd Interim- ordinary dividend Increased ’ by over 13 % 

it Pre-tax profit for fell year expected to. reach record: 
levels 


BTR Limited, Silvextown House, 
Vincent Square, London SW1P -2PL 
01-S345S4S. 


1981-82 
■ High Low 
V 125 .100 

75 . az 

. 61 33 

- 206 187- 
- 10S’ 10) 
.!•'• 104 86 

f . 13t 87 

'83-39 
^ - 78 ; 4* 
A 102 .93 

i.,; 106-100 


. Company: ' ' / ■ Pric 

Am. Brit. )nd. CULS„. 125 

Airsptung 72 

Arm, tag a and.. Rhodes... . 45 
Bardon Hill igg 


Telephone 01.621 1212 
P/E 


Grass Yield 

Pnce Chang* diw.fp) % Actuil 


CCL 11 pc Coriv. Pn»i.!n 105 — 

Dshnnli Can.:... 


z/. '130. 108 
. 334 248 

V. 61' 61 
’ 222 158 
• 15 10 
.80 66 
7. • 44 '..25 

.? -.-’103.; 75 
■-. 263 21 2 

Vi . - ' 


- -mi. wuuv. nwr.... ^05 

Deborah Servicas rr . 

Prank Horsoll iin 

Frederick Parker " gl 

■Gedrfl* Blair 52 ' 

jnd. Precisian Castings 95 

- Isis Cony. PreE -„ 

Jackson Group- qe 

James Burrough 112 

Robert Jenkins 250 

Scnrtrons ,‘‘A" g* 

Tordey and Cariisla ”!! 159 
Twinlacfc Ord. 

twlnlock 15pc 1JLS ” 7jT^ 

"Unilock Holdings tc . 

Wdlter Aleunder ' .....V ‘JTf . 

W.,^. VfeetM 85-,! 


10.0 

8.0 


4.7 

•6.5 

11:4 

4.3 

9 6 

3.8 

3.7 

4.4 

9.6 

15.7 15.0 


B.O 

9.1 


6.4 

49 

-11.7 

6.4 

7.9 ' 

4.1 

*• — 

_ 

7.3 

. 7.7 

8^ 

15.7 14.8 


7.0 

7.3 

3.0 

8.7 

7.8 

8.2 

31J3 : 12 JS 

3.5. 

5 J3 - 8.V 

da. 

10.7' 8.7-. 

6.1 


-r-r - 15.0- 19.2' 

.-^ 3-0 12-0 

• -^-/j • ' -44-' . 8J3 

V . ' . <q • - eo 


W.-£. Team 33iT - 5^. : 4A 

• Pric «. now 8ua'llabJa>n J s ro*to{ 48146^ - 


Wholly-owned subsidiary recently granted full banking 
recognition 


. plc 

52 ComhUI, ECS 3PD 


. ; .Gilt-Edged Portfolio .Memgement . 

Sendee Index SJL82 
Portfolio 1 income . Offer , 7488 . 

Sid TWO 

Portfolio II Capita] • Offer 167.82 
- Bid 1B6.B6 


THE TRING HALJ 
USM INDEX 
117.1 (un changed) 
dose ofjhisiness 8/3/8 
BASE DATE 10/1 i/80 1 
1 .' Tel: 01-638 1581 





^naiicial Times Tuesday March 9 19SS! 

^ .' Sja» BI DS AND DEALS 


MINING NEWS 


27 


ills 


rv 


in 

O 

" n rt o 

|>I,. ‘ to 
v,, l» jJ, 

•'■r , r 

■'Vk 

>tiu , V 

>•‘5 

I; 1 '-j|i 


ACC share 
purchase details 


E & G agrees £13.7m 
offer from Federated 


^ ■ . -®T JOHN MOORE, CITY CORRESPONDENT 


n 


wav 


i: 

' ' l ■ s t-^ 

''“•r-r-T 

’ 

■■ Hu- . 

•K- ' 

1,; >: I,,.'. " 

■ |-r, rn f « 

1 • ■ 
I'le 1,,.^ 

1 i >r»- 

•■t .S 




■■■ i 


, ‘ ■ ■ .5 

t" ’• V 
• " v • 


3 
: 000 
S.WlS 
• •o'. 

. ‘Si 

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. ■..*£ 
- ,.<? 


..ro 


jailed I 


. i 


; »• N 


BUSINESS interests of Mr 
i.; Robert Holmes a' Court, the 
Australian entrepreneur, re- 
.tealed. yesterday at the request 
r of, the Takeover Panel, the way 
in 'which they bought 925,000 
: . -AGO. non-voting shares. The 
:i purchases, made throughout last 
week.; .triggered an investigation 
. Jpy . the Takeover Panel and 
iorred Mr Holmes a Court to 
raise his bid for ACC to around. 
£52m. 

r. Last Tuesday, the day after 
appeal - court judges had ruled 
that directors of ACC should 
accept .an offer for the company 
at the best possible price. TVW 
Enterprises, an - associate com- 
pany; of Mh Holmes k Court's 

- master company the Bell Group 
bought 100.000 shares at 8SJn 
per shares and another block of 

100.000 shares at 88p per share. 
• On ‘Wednesday, TVW pur- 
chased 250,000 at 88p- per share 
and 50,000 at$ 9 Op per -share. 
The following day it purchased 

- 25,000 shares at Dip per share, 

100.000 shares at 92p per share 
Last Friday, TVW purchased 

225.000 shares at 95p per share, 

75.000 at 94p per share, and 5ft00 
at-&3p per share. The total stake 
held by TVW Enterprises in 
ACC’s non-voting shares is 
28,694, 6S9 (52.87 per cent). 

The purchases were made in 
breach' of the rules of fibe Take* 
and sold 50,000 shares at 92p 
over Code. The Code requires 


that if a bidding company buys 
shares in the stock market at 
pnces higher than tis offer, it 
must immediately revise iis offer 
to the highest price paid for the 
shares. 

Mr Holmes k Court’s highest 
offer was worth 85p per share 
for the non-voting shares sti A al 
the weekend the Takeover Panel 
insisted that his offer be revised 
to take account of the rules of 
the City code. 

Mr John ffignett, Director 
General of the Takeover Panel,' 
met with Mr Haknes k Court's 
London representative Mr Alan 
Newman, treasurer of the BeH 
Group. It is understood that the 
Takeover Panel Is insisting that 
merchant banking advisers be 
apointed to act for Bell Group 
and Mr Hotozes k Court as soon 
as possible. 

Mr Hignett was continuing 
the investigation into the pur- 
chase of liie shares 1ag » week 
and the delay by Bell in 
announcing the hid. 

The share purchases were 
made through Potter Partners, k 
leading firm of Australian stock- 
brokers who gave the order in 
London to T. C. Coombs, a UK 
firm of stockbrokers. T. C. 
Coombs said yesterday, “ We felt 
we were not at breach of the 
City code. We were riot aware 
who was buying the shares." 

The Takeover Panel has asked 
for more information from 
Potter Partners. 


«. i* ! 


EUROPEAN OPTIONS EXCHANGE 


Series 


May 

Voi. | Last 


S3501 

S375 


GOLD C 
GOLD C 
GOLD C 
GOLD C 
GOLD C 
GOLD P 
GOLD P 
GOLD P 
GOLD P 


12*1 NL81 87-SI 



10 

2 

1 

0.3O 
86 
46 
68 Bj 
93 B| 


Aug. 

VoL I Last 


9 

37 

84 

74 

13 

36 

1 


Nov, 

VoL 1 Last 


19 B) 
13 
. 7 
5.50 

27.50 
46 
68 Bi 


13 

8 


6 

40 


30 
18.60 


88 

48 


StOOK 


832985 


c F.I07.S0 

60 

3 

100 

3.70 A 


I — 

C F.110 

4 

1.60 

80 

2.10 

915 

2.50 

P F.HO 



900 

1 1 i 

1 300 

I 1.30 

_1Z NL 81 86-88 







C F.102.601 

- 1 

— 

1 SO 

1 2.70 ] 

1 ’ — 

I - 

103* NL 80 86-96 







C F.100 

P F.100| 

1 78 1 
r 30 i 

1 B 1 

["0.50 1 

| 110 


100 

50 

i 

|« ; 

114 NL 83 88.92 





16 

3.90 

C F.lOO 

ISO 

3 1 

— - 


C F.102.50 

56 

1.50 

0 j 

L80 | 

— i 

““ 

p F.102.5O 

200 

1 | 

— 


“ 1 



r 


April 


July 


OCL. 


ABN C 
AKZO C F 
AKZO C 
AKZO C F 
AKZO C 
AKZO P F 

AKZO P 

■AKZO P F 
AMRO C 
KODA C 
KODA C 
HEIN C 
HEIN C 
HEIN P 
HEIR P 

KLM C 
KLM C 
KLM C 
KLM C 
KLM P 
KLM P 
KLM P 
KLM P 
NEDL C 
NEDL C 
NEDL P 
NEDL P 
NEDL P 

PHIL C 
PHIL C - F, 

PHIL C 
PHIL P F. 

PHIL P 
Rb c ' 

*RD C - 
RD P 
-UNIL C 
UNIL C 
UML P 
UNIL C 

UNIL P F.160) 
total VOLUME IH 
A-AsKed 






— 

— 

10 

4 . 

20 

6.70/ 

— - 

— • 

— 

— 

118 

4.30 

15 

5 




2 

20 

2.60 


- ■ 



207 

1.10 

81 

1.60 

10 

0.10 

15 

0.50 


— 

30 

0.10 

— ■ 

— 


“ 



IB 

1.20 

— 

" — 



82 

a 

. — 

• — 



10 

115* 

— 

— 

10 

25a 

— 

— ■ 

— 

• — 

- 10 
86 

5 

1.70 

25 

2.80 

— 

— 

82 

0.60 

10 

1.50 

— 

— 

20 

LAO 

— 

— 

’ 


51 

' 20 5 

mm 

— 

81 

23 AO 

137 

296 

12.40 B 
8 

34 

123 

16 8 
10.50 

— 

— ‘ 

338 

SO 

4 

DAO 

10 

0.70 


_ ; 

52 

0.70 

— 

„ rZ - 



129 

2 

30 

3.90 



267 

5.50 

19 




■14 

2 






SO 

13 

1 

3 

11 

6.00 

— 

— 

83 

7.io e 

— 



r 

41 

16 

. “ 

• 

. ““ 


26 

317 

561 

485 

652 

3.40 

1.40 
0.50 
0.70 
2.20 A 

45 

320 

16 

' 2 
0.80 

2.50 

is 

.166 

76 

33 

260 A 
1.20 
1,30 

2.50 B 

99 

1.90 

36 

3.10 


, 

78 

ojao 

- 26 

1.10 



29 

0.80 

41 

2 



149 

4.50 


— 



30 

28J50 

— 





69 

2.70 

’ — - 




36 

0.70 

— 1 

— 



May 


Aua. 

Nov 


88 

4.60 

- I 

— 1 




FJJ01.SO 

lF.B8.90 


If .4070 
<868T 8 - 

FS4&0 


F.HOJD 


F.lft.10 


IF.23.20 


F.76.40 


.lekzo 


contracts: 

B-»d 


9606 
, C=CaIl 


P=PUt 


FEDERATED LAND, the 
property company ^with expand- 
ing interests in town centre 

shopping, developments, yester- 
day made an agreed £13.7m bid 
for Estate and General Invest- 
ments, the property investment 
and development company 
effectively controlled by private 
houseb uilding concern Provrting 
Holdings. 

Federated shares eased by 4p 
to 136p on the news but the bid 
terms— five Federated shares for 
each nine E & G, equivalent to 
75ip a share— were still good 
enough to leave E & G shares 
16p higher on the day at 74p. 

■ Mr P. B. Prowling, Prowling 
Holdings and directors of E & G 
intend to accept the Federated 
bid for their aggregate holdings 
of about 45 per cent of the 
E & G equity. 

Both companies -.have revalued 
their assets. Federated to pro- 
duce net tangible assets of about 
£19.8m and E & G some £20m. 


Since E & G ends up with 48.1 
per ceot of the expanded equity. 
Federated gains marginally in 
terms of- assets per share with' a 
rise from 'about 182p prior to the 
deal to around ISSp afterwards. 

Federated ; managing director 
Mr Peter Meyer acknowledged 
yesterday that the E & G shares 
had been depressed by the size 
of the Prowling holdings which, 
he estimated, come close to 60 
per cent of the E & G equity 
when family ■ trusts .were 
included. 

The attractions of E & G to 
Federated, he said, included a 
much more diversified portfolio, 
including small shopping, ware- 
house and office developments, 
some of which could be weeded 
out to provide a source of finance 
for - Federated’s - burgeoning 
shopping -development interests. 

Directors of E and G forecast 
.pretax profits of not less than 
£900.000 for 1981 and intend to 
declare a second interim, hi lieu 


Futures exchange stake 
for English Association 


. LONDON TRADED OP 

.Mar. 8 Total Contracts 2,105 Calls 
| | ' • April | July 

TIONS 

.497 Puts 608. - 
OCL- 1 

. Option 

Ex'rci»e> 

price 

Closing 

otter 

Vof. 

Closing 

offer 

VoL 

Closing 

otter 

voi. 

Equity 

c4ose 

BP (cl 

260 

22 

60 





276p 

BP (o> 

280 

12 

-164 

18 

100 

28 

- 

BP (C) 

300 

4 

1 

10 



. 


BP tp> 

280 

7 

57 






BP ip) . 

2BO 

20 

56 

26 

110 

28 



ft 

BP (p( - 

300 

38 


40 

100 

42 


530 

68 

6 

70 


- * 72 



CU (cl 

120 

' 30 


31 

6 

33 

, 

148p . 

CU fo 

130 

20 

U 

21 

2 

26 



CU <c) 

140 

12 

37 

15 

31 

18 

10 


CU fcj 

160 

5 

■ 111 

9 

2 

11 

1 


Cons. GW (c) 

390 

12 


22 

1 

30 


374p' 

Cons. Gld (pi 

360 

15 

4 

20 

2 

22 



Cons. Gld (pi 

390 

32 

13 

32 

8 

37 


?i ! 

Cons. GW ipj 

420 

S2 

2 

62 


52 




Cons. Gld (p) 
Cons. Gfd (pj 

480 

92 

' 3 

92 


92 



99 

500 

132 

2 

132 

— 

132 

— 

** 

Ctlds. (cl 

70 

19- 

5 ' 

21 

8 

24 



84p 

Ctlds. (ci 

80 

9i« 

88 

13ls 

54 

1612 



Ctlds (c> 

--90 

3k 

3 

7 

130 

Bl« 

12 


GEC (ci 

800 

62 

2 

72 

2 

90 

2 

827p 

GEC (oi 

860- 

17 

86 

45 



64 


GEC (pi 

BOO 

'. 15 

21 

22 

1 

29 



Gr*d Met. (c! 

160 

47 - 

10 

53 




203p 

Gr*d Met. (c 
GrdMec. (c) 

180 

27 

. 4 

37 


41 

. 

aoo 

14 

24 

19 

12 

26 



Gr*d Met., to 

220 

4 

20. 







Gr’d Met. (p: 

160 

2 

5 

2is 






Gr*d Met. (p 

180 

3 

10 

7 

4 

9 



Gr’d Met. (p 

200 

9 

— 

14 

2 

18 



ICI (c) 

280 

70 

3 

7B 



... 


346p 

1C! (cl 

300 

SO 

■ 24 

58 

• 14 

64 

1 


ICI (cl 

ICI (c> • 

ICI (pi ' 

330 

360 

330 

26 

1 

33 

2 I 

36 
16 
_ 12 

3 

3 ! 

42 

26' 

16. 


' V 
■1 

•P 

ICI (p) 

360- 

23 

8 

26" 


. - 30 


Land Sec. (cl 

. 300- 

2S 

23 

31 

' . 

42 - 


511p 

Land Sec, Ye; 

' 330 

B 

• 16 

17 

1 

25 

• — 


Mks & Bp. (cl 

130 

r.is 

. . 

,181s 

:- 2- 

-24- 

— 

L43p 

Mks & So. lei 

140- 

9k 

'27 

13 

— 

14ia 

— 


ShelL (c) 

330 

16 

4 

30 

— 

40 

— 

340^ 

Shell Id 

360 

8 

. 15. 

.. 16 

— 

28 

— - 


Shell ‘.pi 

33Q 

14 

70 

• • 18 

' ' 

22 ' 

— 


Shell U>) 

360~ 

■36 

B 

38 

18 

40 

— 


Shell ip) 

390 

84 

1 

66 

2 

68 

— 

»P 



■ May " 

August 

November - 


Be relays (cl 

1 460 

63 

. 15 

I 72 

5 

92 

— 

510p 

Barclays Ic) 

| 500 

20 

4 

40 

— 

58 

— 


Barclays (p) 

. 500 

15 

6 

20 

' 1 

25 

— * 


Imperial (c> 

70. 

16 

10 

2Us 

— 

— 

— 

87p | 

Imperial <□) 

80 

-9h 

5 

14ii 

5 

- T6^ 

— 


Imperial (c) 

90 

5 

30 . 

7 

102 

9 

9. 

J* 

Imperial (p> 

80 

2 

2 

3U 

— 

4 

— 

Las mo (o) - 

260 

42 



55 


65 

2 

2S2p 

La Brno (c) 

280 

30 

- 3 

'44 

— 

55 

— 


Lasmo (c) . 

300 

18 

2 

34- 

r— 

44 

— 



330 

8 

6 

22 

4 

— ■ 

— 


Lasmo lc) 

360 

6 

2 

14 

— 

— 

— 


Lasmo (cj 

420 

.4 

. 15 

. 6 

— 

— • 

— 

f* 

Lonrho (c) 

70 

10 


■ 12 



13 

1 

76p 

Lonrho(c) 

-80 

: 4 

• — 

• 6bj 

6 

71* 

1 


Lonrho (p) 

70 

2 la 

5 

4 

— 

4 

— 

129p 

P&O (0) 

90 

43 

4 

— 

— 

— 

— 

P&O (C) 

130 

9 

15 

13 

«— 

17 

— 


P&O lc] • 

140 

7 

6 

8 

5 

— 

— 



550 

43 

— 

36 



68 

12 

363p 

Racnl (cl 

360 

23 

11 

35 

— 

50 

1 


RacaUp) •• 

- 560 

13 

5 

18 

— 

22 

— 


Racal (p) 

590 

32 

4 

35 

— 

38 

— 



420 

62 

3 

65 

— 

— 

— 

642”. 

Vaal Rls. (c) 

45 

3 

2 

41* 

— 

& 

— 

Vaal RTs. (p) 

. 45 

4^ 

4- 

5 


Bis 

2 



50 

81a 

4 

9 

30 

«i| 

’ll 


Vaal Rfs. Ip) 

55 

13i» 

— . 

?s? 

2 

. 

- T . 


Vaal RTB. (p) 
C= 

60 

-Call 

18ls 

6 

18is 

. P= 

Put 




- 


- 


- 

- -- 

- — 



FAST-MOVING merchant bank, 
English Association Group/ is 
taking a stake in the projected 
London International Financial 
Futures Exchange fUFF E) 
through a new company. Man- 
trad. 

Mantrad will be capitalised al 
£lm to enable it to apply fo r full 
clearing membership of LIFFE 
and it has also taken four seats 
on the exchange, three on the 
first sound of applications. . 

English Association's partners 
in the venture are E. D. and F. 
Han, the soft commodity dealing 
group, which holds a 36 .per cent 
stake in the bank, and Anderson 
Man, a privately owned futures 
specialist controlled equally by 
the commodity group, English 
Association and Mr David 
Anderson. 

The three partners will be 
subscribing equally for £150,000 
of £1 nominal of new ordinary 
shares and £850,000 of 12 per 
cent preference shares. 

A fourth partner is actively 
involved, however, and has sub- 
scription rights ranging over a 
three-year option to draw down 
25 per cent- of the capital from 
each of the other three partners. 


■ Compagnle- Finanelfrre et de 
Credit of Lausanne, quoted 
money broker run by M Andre 
Levy and known as Tradition 
Group, operates principally as a 
broker on the Eurocurrency 
deposit market and has acquired 
sterling and foreign exchange 
money broking -operations. 

The tie-up stems from Mr Tony 
Haig-Thomas, a director of 
English. Association, who 
recently sold City Deposit 
Brokers to Tradition. 

English Association . expects 
that its 6 per cent owned Cali- 
fornian thrift and loan associate, 
San Francisco Bancorp, to bene- 
fit substantially from the hank’s 
finatnwii futures market connec- 
tions. . .. / 

. Mr Robin Cox- Johnston, chair- 
man of English Association, is 
now looking for. a. suitably 
qualified financial .futures expert, 
offering something more than 
just dealing experience, to run 
ManJyad. 

r ~The new company starts 
operations next month of the 
Chicago Exchanges although full 
details of its representation in- 
the Mid-West are yet to be 
finalis ed. . . 


Wiggins Group in £lm 
deal with Newarthill 


No profit estimates relating 
to these businesses have been 
made since many of Gee’s assets 
are to be transferred to other 
parts' of Newarthill but. the 
vendor is warranting profits of 
£125,000 and will makp up any 
shortfall. . 

The consideration will be 
satisfied by the issue oi 900.000 
Wiggins -shares at £1 each. That 
lifts Newarthill’s stake to 243 
per cent of the enlarged share 
capital which will be regarded 
as a- long-term investment 

Newarthill will waive any 
dividends declared • on the 
900.000 -shares- until March 31 
1987. 

Wiggins also disclosed yester- 
day that the acquisition .of 


Thames Estuary Properties will 
cost £651,000; of Which £251,000 
has already been paid. 

NOLTON SALE 

Shareholders in Noltori have' 
approved the sale* of Notion 
Communications to ' Dynatech 
Corp arid completion has taken 
place. " 

. The price .was £406,000 in 
Dynatech common stock. Notion 
wiQ place, these shares in order 
to reduce - borrowings and to 
provide' additional working 
capital within the group. 

HARTOGEN ENERGY 

Hartogen Energy has received 
acceptances for slightly more 
than aom -shares- in Cluff Oil 
(Australia). On the latest 
figures available Hartogen holds 
approximately 51 per cent of 
Cluff. - • 

Hartogen - has - - made an 
approach • to Cluff- for board 
representation - commensurate 
with its holding in the capital. 


of a final,, of 1.15p .to make a 
total of L75p (l.55p) per share. 

. Preliminary result? of Fed- 
erated, for the • year ended 
December -31 last, show pre-tax 
Profits of £575,000 (£927.000) 
after -interest payable of £2.29m 
(£2il7m), receivable of £770,000 
(nil), and included qet rents 
from investment properties of 
£1.09m (£l.Q4m) — some £13.000 Of 
this figure was in* respect of 
Leatherhead Town Centre which 
in a full year would be expected 
to produce in dxcess of £550,000. 

Tbp directors say 1981 results 
are not oomcarable with those of 
19SD or earlier years, on account 
of the ‘phased withdrawal from, 
residential housing with effect 
from January l 19$1. 

■ - After tax of £277.000 f n ' 
earnings per- share are shown as 
4.8p‘ (6.9p) -and the dividend Is 
stepped Up to 3:6S5p (3.35p>. net 

with a -final of 2^5p v 

•. . “ • • 

Dawn raid on 
David Scott 

■ Hilt-- Osbourne and Co 
launched a dawn raid on shoe- 
maker David Scott Group yes- 
terday when almost the entire 
Northamptonshire shoe- trade 
was attending the- Harrogate 
shoe fair. Acting cm behalf of 
an unnamed' client, the Lincoln 
broker easily picked up the re- 
quired 500.000 shares, 10-82 per 
cent of Scott's equity, at a price 
of'20|p per share. • 

Formerly known • as Wearra 
Group, David Scott lost £387,000 
before tax in the half year to 
July' 31 1981 and expected to 
bear the cost of rationalisation 
in the second half. The only 
discloSablc stake shown in the 
last accoants was a holding by 
Mr H. D. Bugby of 7.05 per cent 
'although a trustee ' stake ' of 

440.000 Shares held by tb.C chair- 

mtif, Mr A. J. Harris, had ’been 
sold between September 30 1979 
and January 31 198L , ~ 

ANDOVER 

FURNITURE 

Contracts have been 
exchanged by the joint receivers 
of. Andover.. Furniture. Mr 
JRjcfaard Agutter 'and Mr .Guy 
Parsons .of. Peat. ; Marwick 
Mitchell- for the sale of the 
chair manufacturing business at 
Walworth Industrial Estate, 
Andover. Hampshire. The com- 
pany will trade under the name 
of Hampshire Wood. ' ‘ 

Mr Agutter indicated that the 
sale of the business protected 
the jobs of some 20 people. 

JAMES FISHER 

James Fisher and Sons . has 
reached .. .agreement, with 
Bowatcrs TJK ‘.Paper Co ' to 
acquire from Bowajer bn April 5 
its wholly' owned subsidiary 
Company, . Independent Sea 
Terminals and. Charles. England 
(Shipping),, together .with a 
commercial dock apd .warehouse 
complex at Ridhatu .' in the 
Medway . estuary, for a' .cash 
consideration. ' 

UNION DISO)UNT~ 

The Kuwait Investment Office 
has increased its holding of 
stock units in the Union 
Discount Company of London to 

1.065.000 (10.65 per cent). 

PEABODY HOLMES 

Peabody Holmes has acquired 
the business of Peak Combustion 
Controls. The managements of 
Peak and Peabody have been 
closely associated for many 
years and, accordingly, con- 
tiuuinty of the business is 
assured. 


Full-year net losses for 
Hudbay and Northgate 


BY GEORGE MNJJNG-CTANtEY 

TWO LEADING Canadian 
natural resources companies 
have reported net losses for 
19Sli following substantial 
deficits for the fourth quarter. 

Hudson Bay Mining and 
Smelting, the Canadian arm of 
South Africa’s Anglo American 
Corporation group, turned in a 
net- loss for 19S1 of C$10.7m 
(£4-Sm), or C$1.06 a share, com- 
pared with net profits before 
extraordinary items in 1980 of 
C$4I,4m or CS4.10 a share. This 
was the group's first annual loss 
since : the early 1930s, reports 
John Soganlch from Toronto. 

Hudbay's fourth quarter loss 
was C$15-Sm. more than three 
times the profit recorded daring 
the first nine months of the 
year. 

The Joss in the last three 
months reflected primarily the 
poor' performance of the metals 
side of Hudbay’s business and 
the 50 per cent-owned Inspira- 
tion Copper in the U.S. The 
only, sectors of the group to 
stay in the black were the 
newly-acquired Terra Chemicals 
and Francana Oil and Gas. 

Hudbay is making every effort 
to reduce costs, with the 
Quarterly dividend being 
reduced to 10 cents a share from 
March 11, against 15 cents paid 
for the fourth quarter and a 


BOARD MEETINGS 

The following compsn.e# havo noti- 
fied dates of boatd masting* to the 
Stock Exchange. Such meetings ore 
usually held lor the purpose of con- 
sidering dividends. Official indications 
an not nvmlablc os to whether divi- 
dends are inwums or finals end the 
subdivisions shown bfilow sre based 
mainly on Isst year's timetable. 

TODAY 

Interims; — Av®r Hiiam Tin Dredging 
Malaysia. Fletcher Challenge. London 
nnd Strathclyde Trust. 

Finals:— Comben. De Beers Consoli- 
dated. S. W. Fanner. Hong Kong end 
Shanghai Banking, Wood ho use and 
Rucson. 

FUTURE DATES 

Interim:— 

Yarrow March 15 

Finals:— 

Billon (Percy) July 26 

Bnogewater Estate* March 12 

Bronx Engineering March 1C 

Morrison (W.) Supermarkets April 15 

Schroders March 10 


regular 30 cents in each of the 
previous seven quarters. 

It seems likely that the group 
will report an operating loss for 
the first quarter of the current 
year, and if there is no upturn 
in the basic businesses— the 
mining of copper and zinc — the 
losses could extend well into 
19S2. 

Hudbay should receive the 


benefit of payments from the 
Saskatchewan power plant this 
year. Some C$39.5m has already 
been received, but this does not 
yet figure in the accounts pend- 
ing the determination of the 
total amount by the courts. 

The group's directors said 
they expect " significant and 
positive" benefits from the re- 
structuring of Francana, which 
will result in reduced debt 
against the assets to be retained 
by Hudbay, and the introduc- 
tion of Compagnle Fraucalse des 
Petioles (Total) as a partner in 
the growing coal business in the 
U.S., now shared with Minerals 
and Resources Corporation 
(Miporco), the north American 
arm of the Anglo group. 

Canadian analysts estimate 
Hudbay’s earnings this year m 
the range between ml and 
CS1.75 a share, which should be 
viewed in context of last yearis 
estimates o£ between nil and 50 
cents. 

Northgate Exploration turned 
in a net loss for the fourth 
quarter of C$3.69m or 50 cents 
a share, following the CS1.02W 
Joss for the third quarter. This 
brought the net loss for the fuil 
year to CS4.09m or 55 eents a 
share, compared with profits in 
19S0 of CSJ.Sm or 54 cents a 
share. 


MMC group tin output falls 


THE TIN producers in the 
Malaysia Mining Corporation 
group reported generally lower 
output of tin concentrates for 
the month of February . 

The biggest producer in the 
group. Malaysia Mining Corpora- 
tion itself, produced 687 tonnes 
against 691 tonnes in January. 
This brings the cumulative total 
for the first eight months of the 
current financial year to 5.574 
tonnes, compared with 4,0-JS 
tonnes at the same stage of fhe 
previous year. 

Berjnntai. the second largest 
producer in the MMC group, 
saw output fail to 264 tonnes in 
February from 27S tonnes in 
January, bringing the cumulative 
total for the -first 10 months to 
2,993 tonnes against 2.805 tonnes 
at the same stage of 1980/81. 

The MMC group's output 

Sentrust may 
have merger 
plans in mind 

THE proposal by the General 
Mining Union Corporation 
(Gencor) group's Sentrust that 
“ odd-lot " holders of less than 
100 shares should either increase 
their holdings to 100 shares, or 
sell them, could be a tidying-up 
operation pending new develop- 
ments for the investment 
company. 

. Such • investors constitute 
about 40 per cent of the com- 
pany's shareholders -and, if 
adopted, the latest proposals 
would -mean -important -cost sav- 
ings in share registry and the 
distribution of annual reports 
and other company documents. 

u Odd-lot ” holders who take 
no action will have their shares 
converted into redeemable pre- 
ference shares whidh will then be 
redeemed ar 863 cents per share 
(equal to about 477p compared 
with 30 Lp yesterday). 

A possible candidate for a 
meffger with Sentrust could be 
the group’s U.C. Investments 
which has broadly similar in- 
vestment interests but which is 
Jess active on the shared eating 
side. 


figures are compared in the 
accompanying table. 

Fab Jan Doc 
tonnes tennoa tonnes 

AoVam 71 127 123 

Ayer Hi lb id ... 115 174 235 

BCrjunm 264 276 338 

Kamuntinn ... 16 16 15 

MMC 687 691 747 

Sung*) Bcsi ... 84 79 80 

Tongfcab Harb. 47 .49 61 

Trsnoh Minos 32 46 48 

Results from the Gopeng 
group, which also produces tin 
in Malaysia, were mixed. Output 
of Gopeng, the biggest company 
in tiie group, rose to 150 tonnes 
in February from 1455 tonnes in 
January, bringing the total for 
the first five months to 7335 
tonnes against 63S tonnes at the 
some stage of 19S0/S1. 

Pengkalen produced 71 
tonnes, up from 4 tonnes in 
January. The ' company 


announced that It had ceased 
dredging operations on February 
IS, and was now looking for 
alternative mining prospects in 
Malaysia. 

Tbe Gopeng group’s output 
figures arc compared in the 
accompanying table. 

Fab Jon Dec Ncv 

tonnes tonnes tonnra [grrne* 

Gopcnq ... ISO 14S>« 157L Ul 1 ! 

Montana-.. 35 47 57 55 

Tanjong ... 7 13 12 30 1 .- 

Pengkalen... ‘7 1 * 4 6 

* Ceased dredging operations on Feb 
18. 

Meanwhile, Cornwall's Gcevor 
Tin has produced 10S tonnes of 
tin in February, compared with 
103 tonnes in January, bringing 
the total for the first II months 
of the current financial year to 
1,156 tonnes, against 1.105 tonnes 
at the same stage of the previous 
year. 


ROUND-UP 


After a silence of some three 
months, during which the shares 
have remained suspended in 
London, Idris Hydraulic Tin has 
announced that Malaysia’s 
Foreign Investment Committee 
has approved the proposed offer 
for the shares from Syarikat PKB 
of Malaysia. 

Syarikat paid some M$14 
(£3.30) per share for 34.33 per 
cent of the Idris capital last Nov- 
ember. and a bid at a similar 
price is expected as soon as all 
the appropriate regulatory auth- 
orities have given their approval. 

Idris said that Syarikat’s offer 
will be sent out as soon as the 
aproval of the remaining regula- 
tory bodies in Malaysia and the 
UK has been obtained. 

* * * 

The silveraroduciog Sunshine 
Mining of the U.S. has reported 
a fourth quarter net loss of 
$1.54m (£845,000), against 84.96m 
last time. This brings the full- 
year loss to $1.17m, down from 
1980' s 54.96m. 

* * ■* 

Australia’s Metals Exploration 
is to take up an average of 51.82 
per cent of North KalgurU 
shares tendered as a result of tihe 
former company’s offer of A51.50 
(SSp) a share for a further 15 
per cent of the Australian gold 


producer. 

The success of Metals Ex's 
partial bid brings its stake to 35 
per cent, from the previous 20 
per cent Metals Ex has already 
been invited to place four 
nominees on the North Kalgurli 
board. 

* * * 

Part of the East Rand Pro- 
prietary gold mine in South 
Africa has been sealed off, 
fbLlowvs the company's failure 
over the past three days to con- 
tain an underground fire. 

The mine, in the Barlow Rand 
Gronp. said that workers 
normally employed in the sealed- 
off area will be redeployed else- 
where in order to minimise pro- 
duction losses. 


HUNTING PET. 

Hunting Petroleum Services 
has been notified that on March 4 
Hunting; Holdings sold in the 
market its entitlement in the 
current rights issue to 643,000 
new ordinary shares of Hunting 
Petroleum, out of its entitlement 
to 675,000 new ordinary shares. 

Hunting Holdings intends to 
take up the balance of its entitle- 
ment to 22,000 new ordinary 
shares. 





HOW CAN YOU 
IMPROVE PLANT 
UTILISATION 
COSTS AT 


K 

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Are you getting the 
maximum productivity 
from your machinery? 

Have you calculated the 
enormous costs — not to 
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shifts? 

Cut out this coupon, post it 
to us and In return we won't 
send you any boring sales 
literature. That's a promise, 
tnstead you'll receive 
something practical to 
help you improve your 
plant utilisation costs — 
something that could very 
well add up to even more 
help from us. 


■ 


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AYCLIFFEOPETERLEE 

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AycSlfe Cevetocment Corjxrcfcin . Daefapment CaporaBm 

Merom Roca.AycweindiJBtrid Estate - teeHoise.fteiertee 
Ccxrtfy Difhcm 0H5 CL£ Tel £0325] 313221 


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Send your completed 
coupon to either of the 
addresses betow:— . 




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Aycllffe Development 
Corporation . 
Menomfioad 
Aycllffe industrial Estate 
County Durham DH5 4LE 

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Corporation 
Lee House 
Peterlee 

County Durham SR8 IBB 
Ref FT 




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Companies aad Markets 


.1 ; . 



Touche Remnant restructuring plan Parker Knoll 


INTERIM FINANCIAL STATEMENT 

(Unaudited) 

6 months ended 


BY TIM DICKSON 


MAJOR CHANGES in the Invest- to see such dramatic changes” 
ment policies of its in- and that there remains a signific- 



31.12.81 

31.12.S0 


fOOO 

£000 

Turnover 

30,434 

35.371 

Trading profit 

2,055 

2.009 

Depredation 

664 

687 

Profit before taxation 

L391 

1,382 

Corporation tax 

562 

578 

Profit after taxation. 

829 

S04 

Earnings per share 

3-28p 

3.18p 

(adjusted for 
scrip issue) 


vestment trusts were announced ant demand for trusts with less 
yesterday by Touche Remnant specialised portfolios. 


SUMMARY OF PROPOSALS 


and Co. ^\t the same time Cedar 
Investment Trust,' which is also 


Asked at a Press conference 
yesterday why unitisation or 


under Touche management, said liquidation proposals were to be 


shortly 


Name of Trust 
TR Technology 


putting put to shareholders of Cedar, (Atlas Electric 


unitisation or liquidation, pro- Lord Remnant replied 


posals to its shareholders. 

The changes unveiled yester- 
day involve greater portfolio 


Touche was “aware of the wishes 
of certain institutional share- 


and General) 


Sector 

Advanced 

technology 


TR Australia 


holders who would like to see (CULP.) 


Australia 


specialisation, somereducUonin number of 

future identified with investment trusts with general 


future identified with such investment iru sis wiu. 5^™. 
markets as North A^erica,^ Portfolios. Cedar w<* tihe one in TR City 
Pacific Basin, Property and our stabJe 1 , n * e would of London 

***•- , rr „ sa.tna sm 


The profit achieved in the period to 31st December 1981 
reflects the varied fortunes of our trading companies. Our 
engineering companies moved from the losses of last year 
to a modest profit. The contracting companies performed 
well considering the increased pressure on margins. The 
Chorley division made a good recovery, and 'the purchase 
of a 50% interest at the end of the period in an existing 
Singapore-based company will provide a vehicle to exploit 
their expertise in that pan of the world. 


Pacific Basin, Property and 
Australia. 

The proposals, which have 
been sent to shareholders in a 
document headed Strategy and 
Structure for the 1980s, have 
been eagerly anticipated by the 
stock market since Touche made 


London) 


TR North America North 


Unrestricted: 
weighted to 
higher than 
average Income 


Geographical As 

Spread (A 

40% UK IS 

40% North 
America 
20% Other 
70-80% Australia. 23 
Remainder 

elsewhere, 
mainly UK 

Predominantly 57 

UK 


Gross Feast 
Assets Dir. 
(£m) (p) - 

155 3 JO 


LITTLE . CHANGED pre-tax 
profits were shown by Parker 
Knoll group for the six nwnths 


comment . 

st years acquisition of 


ixnoit group lor me Nathan W 

to January 31 1982 after trading cabinet makers Natten hw 
losses of £622,000 at the sob- proved an expensive espertence 


Details of the proposals— with (Continental America 


accompanying name changes — union) 

are summarised in the table. 

In ail cases, except TR Pacific jr industrial 
Basin and TR Property anj Genera 


a preliminary announcement in . it S lower and TR City 


December. 

They also follow a major 
merging and renaming exercise 


of London where it is higher, 


and General 
(Industrial and 
General) 


the minimum forecast dividend. TR' Pacific Basin 


Unrestricted: 
weighted to 
capital and 
income gro wt h 
Pacific Basin 


by trusts in the Robert Fleming S wi S„J . cnunle of cases 
stable spelt out in detail also id V ao?“. 

-^^rectS, wu. be b,pp^ 


80% North 
America, 20% 
elsewhere, 
mainly UK 
50% UK 
20% UJ. 

20% Japan 
10% Other 
60% Japan 
15% Hong Kong 


The extreme weather since December and the further 
tightening up of the market caused by the large drop in. 
U.K. construction output in 1981 will make it very difficult 
to achieve an increase in profit for lie fuH year. 

An interim dividend of 0.7 peace per share (1981 0.5625 
pence per share adjusted for the scrip issue last November) 
will be paid on 1st ApriL 


Peter Galliford 
Chairman 


GALLIFORD PLC 

WOLVEY, HINCKLEY 
LEICESTERSHIRE 


tional opposition. 

“Investor requirements are 
changing and we believe that 
the trusts' shareholders expect 
Touche Remnant to identify and 
satisfy such requirements," Lord 
Remnant, chairman, tells share- 
holders 

"Investors want to be in above 
average growth areas and sectors 
of the world economy, the con- 
tinued identification of which 
requires specialised investment 
skilL Touche Remnant and the 
Trusts believe that the future 
lies io greater sectorisation of 


(TR Technology and TR Austra- yp Nattl| 
lia) the directors will be dipping Resour 
into revenue reserves to fulfil (Sphere) 
this commitment. jr Pro P< 

The pace at which managers ] n vestn 


centages will be achieved within 
12 months. 

See Lex 


Investment) 


25% Other 


... 

TR Natural 

Natural 

55% UK 

75 

A75. 

Resources 

(Sphere) 

resources 

30% US. 
15% Other 



TR Property 
Investment 
(Trust Union) 

Property 

55% UK 
25% U3. 
20% Other 

53 

130 

TR Trustees 
(Trustees 
Corporation) 

Unrestricted: 
weighted to 
smaller 

70% UK 
. 15% U.S. 
15% Other 

97 

195 


companit 


British Vita advances to £8m 


sidiary Nathan* acquired last 
August- 

The half-year taxable surplus 
emerged at £L15m> compared 
with ’ £LlSm on .turnover 
improved from £13.29® to 
£I7J7m Ttve interim. dividend 
has been held at 2.5p. 

- Earnings per share rose from 
. 8-9p to 9.5p. . 

_■ Mr M. Jourdan. the chairman, 
points -'out that trading profits, 
ex chiding Nathan, rose from 
£1.09m to £1.74m- He adds that 
measures have been taken to 
improve Nathan’s competitive 
position, but that fhe full benefit 
will: not be '• felt until demand 
picks up in the cabinet sector. 

Mr Jourdan feels sure that 
there .will be. an .improvement 
in Nathan’s performance in the 
second half and that the group s 
' investment In Nathan will be of 
long-term benefit 

The underlying strength of 
- the group is unimpaired, accord- 
ing to Mt Jourdan, and he re- 
mains confident about the 
group's prospects. 

The -group Is involved in the 
manufacture • of. furniture, 
carpets and furnishing' velvets. 

Pre-tax profits were struck 


SECOND HALF taxable profits 


investment 


than has hitherto been achieved, 
coupled with more specialised 
Investment management.” 

Lord Remnant accepts that 
certain investors “may not want 


portfolios of British Vita, manufacturer of 



The Scottish Mutual Assurance Society 


Extract from the Statement in the 1981 Annual Report and Accounts 
by the Chairman, H. A Whitson, CBE 


Midi any marked recovery in the 
British economy still to materialise and with 
the continuing high level of unemployment, 
the new business written by the Sociecv 
during 1981 was racher more than might 
have been expected, new annual premiums 
for ordinary life assurance going up by 
11!:%. However this modest increase cloaked 
a very substantial rise in new sums assured 
from £249m in 1980 to £343 m in 1 98 l.ivluch 
of this can be attributed to the highly 
competitive level of our premium rates for 
temporary assurances and in particular to the 
considerable discounts to these races which 
are available to non-smokers. 


pensions, the onlypcssible solution maybe 
in reallocating the existing iinance more 
rationally. The fact that this would involve a 
reduction in the promised starting level of 
pensions at retirement age, demonstrates the 
intractable nature of the problem. 


polymeric products, moved ahead 
from £3.44m to £3.S7m and lifted 
the figure for the whole of 1981 
to £7.97ra, compared with £7.1 lm. 

Turnover improved to £91:87m 

. f£8S.7m i and the dividend is 
increased to 5.4p (5.2p) net per 
25p share with a final payment 
Of 2.7p. 

The directors are satisfied that 
following containment measures 
the company is well structured 
to face trading conditions in the 
UK, which they anticipate will 
remain extremely difficult in the 
first half of 1982, with little or 
no expectation of any significant 
improvement until at least the 
second half. 

! The development of the Euro- 
pean companies continues 
through increased penetration of 
existing markets and by the 
introduction of new products. 
Internationally, prospects for the 
current year in all major opera- 
tions are encouraging, directors 
state, “with the constantly 


from £1.35m in the first half to 
£1.0Sm in the second. 


overall international . business. 
That redaces the . rate of cash 


_ However intematio^lly, P r ^ retention although the UK busk 
fits for the year showed a an» now thrmivir a 


significant increase, helped by 
favourable exchange rates. 

The directors say that the 


nesses are now through a 
capital spending hump and 
should exist quite comfortably ■ 
on a maintenance .basis this year. 


Pre-tax profits were struck exchange rate, 
after crediting lower interrat of whole is now 
£38,000 (£96.000). Tax was re- margins under 
duced to £462,000 (£531,000). will do well to 
The CCA taxable surplus was £3m pre-tax pre 
shown as lower at’ £607,000 at 126p, the " i 
f£1.05m). 8.7 per cent 


for Parker KnolL The cost * 

the purchase, paying 
£1.6m of debts and stock wrfe* 
offs, have taken Parker Knotty 
cash down from £2.7m - to, 
£500.000. Once in charge, the ' v; 
company discovered fto 
Nathan's order book was less - 
healthy than it had seemed, aad ' 
the interim trading loss of - 
£622.000 is almost as large a* 
that incurred io the whole of 
1980. Having shaken , up. the 
manag ement the company r 
brtnging Nathan’s products.**^- 
to the same end of the maifeet- 
as the rest of the bu*i«sa 
Parker Knoll now believes that- •: 
Nathan will .break-eveointfei . .- 
next financial year, Stripping..- 
out this costly acquisition,, they 
3 per-cent fall in trading profits 
(from a depressed^ base)-:*** 
n i m is transformed Into a 
markable surge of BO^per cm;^ . 
illustrating the point that, those * 
at tbe top end of the furniture ... 
market are doing better than 
the mass market coznpetiteo. . 
Hefty price increases were 
achieved and the Raymahere,. 
subsidiary was helped . hy .the ^ 
easing of the sterling-guilder-;, 
exchange rate. The group a*>i--, 
whole is now finding pass*: 
margins under pressure* and,, 
will do well to reach last year’s 
£3m pre-tax profit. Unchanged > 
at I26p, the “A" share* ju2d£> 
8.7 per cent . V - • J ' 


group remains financially sound ^ balance sheet moreover' 


with gearing down, following the 
rights io 1980. Part of the cash 
from this issue has been used 
for acquisitions. 

Pretax figure for the year in- 
cluded associates of £3.39m 
(£3 .32 ml and was after interest 
of £L06m (£2m). 

After a tax charge of £3.47m 


technology 


re mains 'strong with about 20 
per cent gearing and: some 
£3.25m is still, in hand from tbe 
1980 rights issue. Vita is quite 
clear that the . development 
effort should be directed at 
diversification . and ^partnership 
deals overseas, particularly in 
tbe Far East. It believes that its , 


ininiinriiiiJiuitiiamiimiiiiinimfnuniiiiranmiuainiKinuiiiiiiiiJiiiiiurinmKnnL’nriiiiiBmniEffv 

GEORGE H. SCH0LES PLC 

!IVYlixWOiaCS,mHENSHAW^MANCHHSTffi 


MamifactureisofWylex Electrical Products 


£91,000 (£66.000). and a much 
higher extraordinary debit of 
£596,000 (£7.000). the attribut- 
able figure came through behind 
from £4.2Sm to £3.81m. 

Dividends' cost was £L45m, 
against £l-24m, leaving a re- 
tained balance of £2.37m 
(£3.04m). Earnings per share 
are shown as 16.5p (15-7p) and 
net asset value 146p (133p). 


Japanese ; and - local .vestures 
have still to come through fully 
and looks for further overall 
growth this year. It remains 
tolerably confident that it can 
absorb some big material -cost' 
increases from the chemicals ' 
sector, but is pondering the ; 
scale of its knock-on price rises. ; 
The half year should start well 
with currency benefits making a 



INTERIM REPORT 

Unaudited resoltsf or the half year to 31st December, 1SBI 


On a CCA basis the pre-tax significant impact on interim 


broadening product base rein- ^sults is reduced to £5.69m comparisons. The shares climbed 


Non-Smokers 

The Society has for some years offered a 
■premium discount to confirmed non-smokers 
on most of its range of life assurance 
contracts. Recent evidence from America 
however has demonstrated that the mortality 
differential between smokers and non- 
smokers would justify a much higher 
discount, the level of which is reflec t e d in our 
current races. 

The Scottish Mutual is the pioneer in 
this field but a number of companies have 
subsequently indicated their intention to 
follow our example but not in respect of such 
a wide range of contracts as axe available 
from, the Scottish MnruaL 


Legislation 

The Insurance Companies Regulations 
of IPS I, as well as bringing up to date the 
existing rules for the calculation of assecs, 
introduce for the first time a minimum basis 
for the valuation of liabilities and specify the 
additional margin of solvency which must be 
demonstrated. Long-established companies 
will have no difficulty in satisfy iag the 
solvency criteria, but there may be some 
public satisfaction in that weaker companies 
will not be able to indulge in unbridled 
competition for business which would cause 
financial damage to themselves arid others 
with inevitable adverse effects on. the 
interests of the insuring public. 


forcing the strength and success 
seen in the past." 

The effect of a reversal of a 
slow recovery in the economy on 
the company's customers, to- 
gether with" the substantial 
chemical price increase in the 
last quarter of 1981. resulted in • 
profitability, from the UK and 1 
European operations, being down 


(£4.l6m). 

• comment 


British 


2p yesterday to l52p for art 
historic yield of 5.Tper cent and 
a p/e. of 9.1. That is about right 
for the time being; Vita looks 


reliant on its overseas strengths, equipped .to deal with flat UK 


Profits at home and in Con- automotive 


furnishings 


tinental Europe are down by demand, but a second half bad 
6 per cent, but tbe upturn in debt provision of £314.000 is 


other areas is held back by a some indication of the continu- 
45 per cent plus 'tax charge on mg pressures. 


Jeavons Engineering at £0.6m 


A 45 PER CENT improvement The total distribution of £266,000 
in export orders and strong equals the flotation prospectus 


borne demand for Jevco fittings, forecast. 


increased market share for gas 
distribution regulators and 
reduced overheads all helped 


And as stated- in the pros- 
pectus. if the offer for sale had 


the discontinued contracting 
activity of £169,000 covered its 
trading loses of £47.000 
(£236,000 profits) and reorgani- 
sation costs of £122.000 (uif) i 



1991 

1980 : 


£000 

£000 

•Sales , V 

8,064 

6720 

Trading Profit ... 

1,241 

41.5V ;■ 

Interest on ShortTerm Deposits 

31 

. 


1^72 

41S ( : . 

Bank Interest Paid 

— 

25 

Profit before Tax 

1^72 

390 '. : 

Tax 

523 

177 V 

Profit after Tax 
, Proposed interim Dividend: 

748 

213 " ; 

Rate perShare 

Gp 

4p ' v 

Amount 

257 

. J2L“* 

Profit tetained 

492 

.42 

Earnings pershare based on profit 


m% i - 

aftertax shown above > 

17.5p 

SjOp..* 


been made at the beginning of and left a tax credit of £77,000. 


Jeavons Engineering exceed its 1981. the directors would have (£103,000 charge)., available for 


interim forecast 


taxable forecast total dividends aggregat- the company. 


profits of not less than £575,000 ing 3.75p net per share. On the This credit together with tax 


Pensions 

During 19S1 the Occupational Pensions^ 
Board published its report on the problems of 
early leavers. This OPB report bad. been 
preceded by that of Sir Bernard Score's 
Committee, a report which, while ostensibly 
concerned solely with thecostot public 
service pensions, had to direct a lot of its 
attention to the inability of much of die 
private sector to maintain the purchasing 
power of its pensioners. 

Ac a time when there is no prospect of 
prov iding higher levels of finance for 


Accounts 

A notable feature of die accounts is the 
substantial increase in investment income 
from £29m to £37m- This was mainly due to 
the operation of an investment policy which 
for much of the Year reflected a lack of 
enthusiasm for the prospects of ordinary 
share investment in Bricain as against the 
high return available in gilt-edged securities. 
Such a policy, when applied to the 
. investments underlying our unit-linked 
contracts and those of out managed fund 
subsidiary in. particular, wins no medals in 
the performance tables while the stock 
market remains strong and incerest rates 
remain high. It is difficult however to 
visualise any sustained advance in the 
ordinary share market until a strong recovery 
in business profits is in evidence and such a 
recovery seems unlikely at current levels of 
interest rates. \XTicn incerest races fell, there 
will be no cause to regret our heavy weighting 
in holdings of longterm fixed interest stocks. 


for 1981. 


On sales relating to continuing have £210 - 000 - 


present share capital these would of £238,000 (£376,000) for the 


activities of £5.02m (£6.77m), 
this company which was hived- 


Maher, chairman, 
bmp roved - demand 


continuing business, and a- share 
of flotation costs of £120,000 
(nil) left attributable profits of 


off by Pentos earlier this year du ri ng the second baitf of 1981 


Thtf unaudited results forlhe half year to 31 st December, 
1 981 are shown above. 

I am pleased te report .that the Company's improved per- 
formance m the second half of our last financial year has 
beeiunaintamed and is reflected i n the I nterim Report 
The Directors have today declared an Interim Dividend 
of 6p per share payable on the 12th May, 1982, to 
Shareholders on the Register at 8th April, 1 982. 

G. R. C. McDowell, Chairman 




UMUC profits Ml MMI..VW *V, .UU1S9 WU MHW U 1UW 1 , • ■ «. ~ , . J . I ~ 

(£932,000) before tax and the 1982 and improved export per- d cash Vl 




-share of the costs of flotation. forman.ee is being maintained. nana or *****"*>. 


With stated earnings of 8.4p He expects the company’s regu-' 
per 25p share— after tax, but lators to achieve further market 


8th March, 1982 

ciiufitTrnnnfrmimimfnttnrTinfuitnfiitimiJL’!i)n[!iii:m:nirniiiimtitii[i';min;ttn;mit;utti;nnr.tB 


before flotation costs — the final penetration in the home market 
dividend is set at 1.125p net. and new product developments 


which absorbes £63,000. Earlier could well mean a significant jo- 


in the year there was a l.i25p 
second interim and prior to the 


crease in overseas (business. 
Overall he says the prospects 


flotation a special first interim for the company are encouraging. 


MITCHELL C0TTS 


of £140,000 was paid to Pentos, The 'profits from the sale of 


Interimlteporfcfor&esixmonths 


FOLLOWING a one-for-one 
£225,000 rights issue, with a par 
value of 7}p each, Abwood 
Machine Tools plans to unify 


existing creditors. If the resolu- 
tions to be put before share- 
holders on March 29 are passed, 
the group win give assurances 


the new and existing equity at to .the Court That, until 


The Annual General Meeting o£ the Society takes place in the Central Hotel, 
Gordon Street, Glasgow, on Wednesday 24 March 1982 at 12 - 15 pm. Copies of 
the full Annual Report and Chairman's Statement can be obtained, from the 
Secretary, 109 St. Vincent Street^ Glasgow G2 5HN. 



The Scottish Mutual Assurance Society 

Head Office: 109 Sc. Vincent Street, Glasgow G2 5HN 


a common nominal value of 7$p 
with an application to the courts 
for a capital reduction. The 
existing shares have a par .value 
of lOp per share. 

Shareholders, . who include 
Cayman Is lands- based Madison 
Investments with an approxi- 
mate 34 per cent stake, will be 
asked to approve a redaction 
in the capital from £85,000' to 
£815,000 by cancelling the paid- 
up share capital to the extent 
of 2.5p in respect of each of the 
3.4m issued lOp shares. 

Tbe board, headed by Hr 
Geoffrey Suckling, has empha- 
sised that the redaction win not 
impair Abwood’s ability to pay 


standing creditors on the date 
the scheme becomes effective 
have been discharged, it will not 
pay any dividends which, but 
for the reduction of capital and 
the consequent £85.000 rise in 
distributable reserves, it would 
otherwise he unable to pay* 


Profits for fhe six inonSis to Slsfc £)ec^ribeor Overneceni years an undue dlsDarTfvTiaa 

1981 were£4,324,000, an increase of 21%'civer developed between, the interim and finti 


thepr^cmsyeanTbiS omprovementis largely ? rimdends.'We understand that Shareholders 


Rise by Davies 
& Metcalfe 


dQetoin creases in profits of our U^-KL transport woold prefers more even distribution and 
tation^obsidiaries aided By very safefectoiy accordingly an interim dividend ofL5 timm 
results from Brnda International, acquired peorsharehasbeendedared (1980-0 65 

_The outiook-a>ntinueS-to depend upon £1,094.000 0980: £408^00 > andvrill beuaid rS 

ffitKms m South Atnca and, Ansteaha.and ’. 10ih.MayI9S2te ShareholdereShe 5 

Tnprti ic m pn no ■horhMilQrlw in 'tfia nTmmer l ■ .. _ _ _ 


To the Shareholders of 


COMPANY ANNOUNCEMENT 



East Rand Proprietary Mines, 
Limited 

( Incorporated in the Republic oj Sooth Africa) 


A Member of tbe Barlow Rand Group 


UNDERGROUND FIRE 


An underground fire was discovered in a stops on the 
78th level at “ G " incline shaft at approximately 22h00 on 
Thursday, 4th March. 19KL 

A strenuous attempt was made to contain the fire by 
direct fire fighting methods during the ensuing three 
days. However, this proved unsuccessful and on Sunday, 
7th March, the area was sealed. 

The personnel normally employed in this area will be 
redeployed elsewhere in the mine in order to minimise 
production losses. 

There were no casualties! 

Registered Office: 

15th Floor 

Johannesburg 63 Fox Street 

Sth March, 1982 Johannesburg, 2001 


copxrNSAGSja' handjslsba 2 «ik: jus 

(AKTESELSKABET KJ0BENHAVNS HANDELS BANK) 


Pre-tax profits of Davies and 
Metcalfe, mechanical and eiec- 
.tricai engineer, advanced from 
£241 A 05 to £896,772. and net 
profits pushed ahead from 

£381,714 to" £763,804 in 198L 
; This follows a mid-term 
Improvement at the taxable level 
from £91,894 to £519,369. 

Hie final dividend Is 1.4p net. 
lifting tbe total payment from 

L47p to iA7p. . 


cGtions in. South, Africa, amd, Anstcalia .aml 
there is evi den ce, particularly in the Tmtirng ’ 
sectoi;af-an increasing • downtom vdneb^s 

affiyjing- many of m-n-rYimy+f: Chrr iwm nar^t>s 

have so far performed reasonably vreu^bab 

rl wtb P c i Ttr imi fHffl 

frirecastfiie ontcon^fortbeyearasawiiole. 

Ik is plwMKtwg - tn aotBaOQace thgfc 'frnaiami^ 
arrangements lor tie substantaad^eontzactm 

vs Y' j x i ' i ■ v- ' • _* 


♦♦ 

♦♦ 

♦♦ 

♦♦ 

♦♦ 

♦♦ 

♦♦ 

♦♦ 


attbedose olbnaraess on 2ndApri 1 taa* 


^ ' EEpnnKEgj 
•W Chmgroan. • 


Capital Plant Interhatann bgy -ung r . 
caxnpleied. This contract is not eipeefe 


Against delivery of coupon No. 10 payment will be 
made of a dividend of 15% (less 30% dividend tax) 
for the year 1981. We draw the attention to the folder 
the Bank has published on the special taxation rules 
pertaining to shareholders who are residents of U.K. 
and Ireland. The folder is obtainable from N. M. 
Rothschild & Sons -Ltd, P- O. Box-185, New Court, St. 
Swithin's Lane, London EC4P4DU. 


Payment will take place at the Bank's Head Office at 
2 Holmens Kanal, DK-1091 Copenhagen, Denmark, 
or through N. M. Rothschild & Sons Ltd. 


March 5 

Banco 8itabo ... 
Banco Contra I .. 
Banco Exterior ... 
Banco timpano .. 
Banco Ind. Get. 
Banco Santander 
Banco Urquijo .. 
Bones Vizcaya .. 
BfflGo Za*9Me. 

Dragodos 

Ecpenoto Zinc ... 

Fecsa 

Gal. Pmcndea .j, 

Hrdrola 

Iborduora .~ u .. 


335 

384 

310 

322 

110 


227 -3- 

372 -3 

239 

Ml -3 1 

IllinilHI S95 “0.7 

45 -I- 5 

64 -1>2 

- 


Tlnaadited. Interna Besidis six tooidhseaded31at Decem^ec 3981 

-I-' ' Storianfiis Stemonlihs ‘ Year 

-7 : Deal981 - Dec.1980 .• JbnblS 
- - — ^ •>* £0Q0s ■■ •£QQOs £Q00 r 

Tomover . > 190,56s ; : ' ^9,736 . 363^26 

: r. J 6J353 - lAoryy 

interest' ■■■ , - 3,132 . -..^71'. v srsb 

Pro^be^akration ‘ : . . ’4324 ■ .; 3,582 9.139 

Ration : ■ - 2,572 > - t680 3.897 


Copenhagen, 8th March 1982 



Pecoleos 38 

Patroliber .: 30 H-2 ' 

Sogefiaa 14 

Tdeloirtca 72 

Union Elsa ; ..S' 03 J' —0.5" 


Profit af^Tasafipn. 
Mmoritylnter^fs ■ 


vm 


159,736 
• - 6^53 
..2,771 
;;:3,582 
-.•',1,680 
, : .I902- 


^ . Year 
urmel981' 
£000s 
_ 363^26 
14967 
5,828 
■ 9,139 

3,897 

J. ‘5^42 


COPENTHAGEJff EANSEI^BANE AJ3 

(AKT1ESB5KABET KJ0BENHAVNS HANDELSBANK) 


LADBROKE INDEX 


Close 591-566 (+3) 



Attributable Profit 









. Financial Times Tuesday March 9 1982 

" v CURRENCIES; MONEY and GOLD 


£ and $ ease 


THE POUND SPOT AND FORWARD 


' S||| o D 

\ 

; ^ 

'’"Ik 3 

**r i;!? 
‘M 

1155 i 

• Illy \ 

***'■ 
" WljtK 

yZ 1 '- 

" Hi 

’* ‘flic J * 

£.!?? 

• L 

I; 

., 

' ' “ t'5 v 


1 '»% 


■•'-'“a 


Sterling fell in currency mar- 

• fcet£ yesterday following heavy 
. profit' taking in New York on 

Friday- The shake out in ster- 
. ling. preceded today's UK Budget 
tfhich -should see % reduction in 
clearing banks' by half a point 
4 t * fuJJ point The Bank of 
jagfimd may have been in the 
market during the afternoon just 
" to give a steadying hand. 

• ne- 'dollar was -weaker after 
' Fri^Viarger than expected fall 
. in-ilT.-S. -money supply. Euro- 

da&ar rates were easier y ester- 
. day. although the dollar finished 
^ov^arts - the upper part of the 
(jay’sspread. 

The ■ Dutch guilder- remained 
tforstrongest currency within the 
Earopean- Monetary System 
reswrday followed by the Danish 
• fcrime. The Deutschemark showed 
an overall Improvement hut re- 
mained the weakest member of 
"liw 'system. 

SXERUNG — Trade weighted 
index 90.2 against 90.4 at- noon, 
90.6 In the morning and 91.1 at 
Friday's dose (88.7 six months 
ago).' • Three-month interbank 
13/rf _peir cent (13 U per cent six 
months ago). Annual Inflation 
■13 "per cent (unchanged from 
previous month) — Sterling 
opened at -SLB355 against the 
dollar and touched a best level 
of S1.SS7S before coming back 
in the afternoon -to touch a low 
of $1-8225. .It closed at $1-8245- 
SI. 8255, a fall Of 1.35c from 
Friday." . Against, the D-mark it 
slipped, to DM 4.2750 from 
DM 4.3125. and FFr 10.9400 from 
FFr 1LG350. It was also down 
ngalast the Swiss franc at 
SwFr -3.3600 compared with 
SwFr 3.4050. 

. DOLLAR — Trade weighted 
index (Bank of England) 112.0 
against 112.2 on Friday and 
in.O six months ago. Three- 
month Treasury bills 12.01 per 
cent: 05.57 per cent sir months 
ago).. Annual inflation 8.4 per 


cent (8.9 per cent previous 
The dollar fell to 
DM 2841a from DM 2.3440 
against the D-mark a nd 
SwFr 1.S400 from SwFr 1851 0 
in terms of the Swiss franc. It 
was firmer against the Japanese 

Y234.00 Werer ’ at Ymi5 £ronl 

9-MAJRK — EMS member 
(weakest). Trade weighted Index 
122.7 against 122.5 on Friday and 
1168 sis months ago. Three- 
month interbank 10.07} per cent 
(12.675 per cent six months ago). 
Annual inflation 68 per cent 
(unchanged from previous 
month) — The D-Mark showed 
mixed changes within the Euro- 
pean Monetary- System > esterday 
but improved against the dollar 
and sterling. The dollar was 
fixed at DM 28334 down from 
DM 2.34</ and sterling was 
lower at DM A279Q compared 
With DM 4.3200. The Swiss franc 
rose to DM 1.2700 from DM L2541 
despite a fall in domestic interest 
rates. Within the EMS, the 
Belgian franc rose to DM 5.424 
per BFr 100 from DM 5.404 and 
the Dutch guilder was higher 
at DAI 91.29 per FI 100 from 
DM 9183. On the other hand 
the French franc slipped to 
DM 39.05 per FFr 100 from 
DM 39.095 and the Danish krone 
was lower at DM 29.71 per 
DKr 100 from DM 29.77. 

Japanese yen — Trade 

weighted index 139.1 against 
138.6 on Friday and 140.1 six 
months ago. Three-month, hills 
6.53125 per cent' (7.40625 per 
eent six months ago). Annual 
inflation 3.3 per cent <48 per 
cent previous month) — The dollar 
closed at Y233.95 against the yen 
in Tokyo yesterday up from Fri- 
day’s close in New York of 
Y233.2. The fall in U.S. money 
supply had an initial downward 
effect but the dollar soon 
recovered and touched a best 
level of Y234.00. 


March 8 

£Ts. 

Canada 

Neihlnd. 

Belgium 

Denmark 

Ireland 

W. Gw. 

Portugal 

Spain 

haly 

Norway 

F rente 

Sweden 

Japan 

Austria 

Svutz, 


Day’s 

spread 

7.82ZS-7837S" 

2-2D80-2J350 

4.87-4-71 

78.75-79.25 

14.34-14.41 

1^090-12170 

OJ2S-AJ30 

125.76-128.75 

187,00-188.10 

Z302-2J14 

10^2-10-BQ 

1032-10.38 

10,47-10.52 

425-430 

23-90-30.10 

3JB-3J9 


doss 

1.8245-1^255 
2-2130-2-2140 
4.67=t4-68»j 
78.75-78 J5 
14J5V14J6** 
12100-1.2110 
4*37-4.29 
125J0-12fi^D 
18750-187.70 
Uta-ZXB 
10X3-10^4 
10X3-1095 
10,48-1049 
427-428 
23X3-Z9X8 
3J35V3Jfib 


0.07-0. 7 7e dim 
0.35-O,45c die. 
-Pr-I^e pm 
Ecpm-Sdis 
2 *i-Ahb die 
O.B2-O.76p din 

ivivpf pm 

GO-iaSc d« 
io-20edte 
1 0-131 jre d» 
1*>2\ora dis 
S-Itc dia 
>s pmJ»Bre dls 
2-80-2_55y pm 
18-14gro pm 
2V8* pm 


% Three 
pa. months 

—0.79 0.45-0 ,55dJ* ■ 
-2.17 130-1 J«dis ■ 
4JB1 4V4Hpm 
— 5-15 dia 
-231 8V10H dia - 
-6.79 1.75-151di» - 
4.21 eV) 7 * pm 
—11.66 176-385 die - 
-0J8S 30-40 dls 
-5J89 35V39*? dis * 
—2.08 4V5\ dls * 
-1.10 EV6^ dls * 

0.21 1 J a pm 

7.65 7.00-6.70 pm 
6.60 35-28 pm 
8.33 5V-5 1 * pm 


Belgian rate is lor convertible 
Six-month forward dollar 1.00' 


Irenes. Financial Irene 84.90-85.00. 
>1.10c dis. 12-month 1.95-2-IOc die. 


THE DOLLAR SPOT AND FORWARD 


UKt 1 .8225-1 -8376 1.824S-1.82S5 0.07-0.170 die 
Ireland t 1 .6070-1 .STB 1.5070-1.5090 O.M4.70 g pm 
Canada 1X110-1^135 1,2130-1 JOSS O.11-0.1 6c dia 
Wat/ifnd. ZSB10-ZSS7O Z5SW-ZM7Q 1.68-ISBcpm 
Belgium 43.13-43^5 43.23-43.25 3c pra-par 


% Three 
pji- months 

-0.79 o!454£6dis" ■ 
S.37 1.93-1 .78 pm 
-1X4 0.41-0.4£dis - 
7.62 4.34-4X4 pm 
0.42 7-3 pm 


Denmark 7.8500-7.8606 7.8500-7.8600 0.704L85ore dis -1.18 2.50-3- OOdis -1 


W. Gar. 2X325-2^420 2X410-2X420 IM-OJSSpt pm 5.00 2.60-2 7S pm * 

Portugal 69.05-70.15 88X5-70.15 30-9Sc dis -10.71 80-190 dis -1 

Spain 102.64-102X5 102X4-102X5 par-IOc dls -0X8 18-28 dis -( 

Italy 1.2S0V1-263’* 1. 263-1 JS3\ SVS.'ira dht -5X4 T7-7S dtS -f 

Norway 5.9350-5.9450 5X3S0-5X450 0.70-DX5ora dts 1J57 2.35-2, 65dks -1 

France 5X8004X000 5X920-5X990 0.104JX5C dis -0.35 1.70-2.00dka 

Sweden 5.7380^5.7500 5.7400-5.7500 OXO-OJSora pm 0.89 1.70-1X5 pm 1 

Japan 233JX^Z34XS 234.10-234X0 1.85-I.SOy pm 8.07 4X5-4X0 pm 1 

Austria 16.40-16.43 16.40^-IBXI 10-8Hgra pm 6.77 22^-19*. pm i 

Swiiz. 1X370-1X440 1.B3K-1X405 1X3-lX5cpm 9.07 3XS-3X0pm 1 

t UK and Ireland era quoted In U.S. currency. Forward premiums and 
discounts apply to the U.S. dollar and not to the individual currency. 

CURRENCY MOVEMENTS CURRENCY RATES 


16.40-16.43 16.40V1BX1 lOXHgra pm 

1X370-1X440 1,8395-1X405 1X3-1X5cpm 


' Bank of Morgen 
Mar. 8 ' England: Guaranty 

! Index Changes! 

Stoning ' 90X 1 — 83X 

UX. dollar.. _.! 112.0 i +5.0 

Canadian dollar.... i BOX —17.6 
Austrian schilling.- 117.0 +84.8 

Belgian franc ' 96.5 ■ — O.S 

Danish kroner. i 94.3 > —12.9 

Dauteche mark 122.7 , 4-45.3 

Swiss franc 156.3 ; 4-109X 

Guilder 115.3 i +22.1 

French franc......... 80.0 I —14.3 

Ura 55.1 : -57.7 

Yon 13P.1 J + 33.4 

Based on trade weighted changes tnmji 
Washington agreement Pecember. 1891. 
Bank of England Index (base average 
1975 Ml 00). 

OTHER CURRENCIES 


i Bank! Special | European 
[ rate . Drawing . Currency 
I % I Rights ) Unit 


Sterling— — l 

UX.S. 12 ; 

Canadian sjl5.12> 
Austria Sch. 

BtriglanF 13 

Danish Kr— ' 11 

D mark i 71- 

Guilder. I 81; 

French Fr.... 9 is 

Ura i 29 j 

Yen — -m— 5'j 
Norwgn. KrJ 9 ! 
Spanish PtS., 8 • 
Swedish Kr. ( 11 
Swiss Fr...— ! 6 1 
Greek Dr'ehJ 301* 


0.616776 
1.13456 
1X7520 : 
18.6760 i 
49X683 1 
8,95735 
2.66361 i 
2.91979 
6.81190 
1436.07 i 
266.054 ! 

Unav. | 

116X76 ] 

6X3166 

2.10710 


0.660667 

1.03135 

1X5226 

16.9C31 

44X728 

8.12959 

2.41913 

2.65262 

6.19118 

1305.43 

242X63 

6.15909 

105.919 

5.93210 

1X1645 

62.8505 


EMS EUROPEAN CURRENCY UNIT RATES 


£ 

Note Rates 



Dautscham'kiJapan'aaYen FtonehFnne,SwluFranc 'Dutch Guild'. Italian Una Caned in Del la q Belgian Franc 


Pound Sterling 
UXw Dollar 



FT LONDON INTERBANK FIXING (11.00 a.m. MARCH 8) 



6 months UX. dollars 


bid 14 i.MS ■ « offer 143/18 I bid 14 1/18 offer 14 1/16 


the fixing rates are ths arithmetic means, rounded to the nearest one- sixteenth, 
of the bid and offered rates for Store quoted by the market to five reference banks 
at 11 am each working day. Ths banks are National Westminster Bank. Bank of 
Tokyo. Deutsche Bank, Banque Nationals do Paris and Morgan Guaranty Trust 


i ' •vtfi.-nd 
I'i J, 23 


EURO-CURRENCY INTEREST RATES (Market closing Rates) 


Short term 14U-141* 

7 day*' notice 14-14ii 

Month 13>s-135a 

Throe months .J 13J«-13 &b 

Six months J 1 5 ,a '}l 1 ‘ 

Qna Year ....'. ' 13i4-139a 


137«.141b 

14-14 

14 14 1« 
14-1414 
14.V-14,', 
14rii-14,fc 


Canadian 

Dollar 

1415-151* 

14la-15l2 

15U-155a 

15SB-155. 

151*157# 

15^4-15'a 


Hutch Guilder! Swiss Franc 


(West German I 
Mark 


| Belgian Franci 

Frenoh Franc I Italian Ure C onvert i ble (Japanese Yen 

131*-14U 18-20 12>2-131i . 6-6 U 

1S3«-14I* lB34-aOS4 12>t-14 6ji -6,v 

14.145s 19-20 1314-2414 OifSig 

15-155* 19lj.20l* 13l«-14i4 61* -65a 

157„.16i4 1950-205# 13U44U 6H>-6^ 

166H-17 205»-21i* 13ij-14i* 6nr-6is 


BFr (financial)' short-rarm 13V13*. cant; seven’ days' notice 134-13* percent: one-month iy,-13V par cant: three months 13V13*. per cant; six months 

13l, ’c^> per cent- thres months 12V12% par cent six months 12V12’. per cent: ons-yasr 12\-13 par cant. 

ECU linked doposhs one-momh l^.l-ia^ p” mnt: 1*.^ months 12V12'. par cant: six months 12*S*-1_3»u 0*r CMC one-year 12V13* per cent 
A»4»e S fcloshio rate* In Singapore): crva-Siontha par. cent three month* 13»V-144* per cent ««x months 14-M>, per cent: one-year per cent 

taiS slSu' -i.- 7SSS w -ni: HV1S. p.. c.n,: <ppr 15 -1S. p .r c.nc tl.. yu„ 15WS. p> -it »™™' =!»'». 

“■^SWi'aS 1 SSM’A'ftwIo’tr «: — ».»-»« P.' P.PC .p. ™,p» 13.70- 

13.80 par cent: one-year 13.70-13.80. per cent. 


MONEY MARKETS 

A restraining hand 


London clearing bank base 
lending rate 13* per cent 
(since February 25) 


n unwinding of positions despite a 

uw - cut in U.S. prime rates, 

f-e-g re 11 In Paris the 12$ kilo bar was 

\nQI*n Toll fixed at FFr 85,000 per kilo 

kJlidl IdU ($337.51 per ounce) in the after- 

noon aginst FFr 65,000 ($337.92) 
Gold fell- $16} an ounce in the in the morning and FFr 65,000 
London bullion market yesterday ($339.31) on Friday afternoon. 

«n .TnPA -t aMfl-107 Tk* itliumfl f « T_f„— ♦ 1<ll Ul. h.. 


Sharp faU 


» ^&£gSS£*S?8i 

tsr&jrsJZ s?& 

but the authontees put , , hil , offered to the 


an SncKcation that the au&oritdes London bullion market yesterday ($339.31) on Friday afternoon, 

did not wash to see any move to close at $326-327. The dosing In Frankfurt the 32} kilo bar 

on reducing bank base rates level was the low for the day was fixed at DM 25,355 per kilo 

before today's Budget statement, and its worst level: since early (S33697 per ounce) against 


before today's Budget statement, and its worst level: since early (S33697 per ounce) against 
ratiber than suggesting that the September 1979. Trading in New DM 25,840 £$342.02j previously 
<tnwnward move had eone too York saw the metal fall further and closed at S3283-3291 from 


thing of a restraining hand on 
events by lending funds at a 
penal rale of 14 per cent, com- 
pared with the present clearing 
bank base lending rate of 13* 
per cent, which was also the 
level at which official repurchase 
agreements were arrangid last 
week, and for a small nmriber 01 
bills yesterday. 

hi <fihc morning the Bank or 


band 4 bills were offered to the opened at S334-355 in London and 
Bank of England at about 1 per fel l steadily, reflecting further 
Cent below die previous Official memmmmmmmmm^emmmm^emmemm 
dealing rate, which was j Mar. 8 

obviously unacceptable, but that 1 r - -*~ 

a cut of I per cent in fcase rates e*« Bu/»ai 

may still be possible tomorrow ciom W326-327 «17* 

after the implications of the 

Budget are clear and «be per- JgSJSSMriiSSW <fie£ 
formance of sterling is taken 

into account. . Bold Colne 


ocyiuooer xsrr sr. imututg in XJM za,£f4U twiz.vtl previously 

York saw the metal fall further and closed at $328 i- 329 i from 
to $324 in the morning. It $342-343. 

opened at S334-355 in London and In Zurich gold finished at 
■ ' $328 J-329 down from $341-344, 


item OulUon {One Mncel 

(£1781,-179 ;S342S«"343!| 

{£182-182 laJ S338-539 
(£183,414) SS40 
(£180X47) 6342JfO 


Bald Colne 

8336-557 (£184-185) 

*172 it 173 1, (£9411-95) 


distance of onlyj^ by ^y- iVFpeV^ While one small S*SS5SCa 
ing band 1 bank biiis (up w) » proV in<33l bank reduced its rate New sovereigns.; 
days maturity) at an unchanged r 15 , ceaL King sov«reign»J 


I88.B9 
836X7 
8337X58 
580-80 ij 
£06X7 


rate of 13} per cent. in Paris the Bank of France yf^aTfiSZ^: Stmbii 

la the -afternoon a farmer in<1 | cate< j that it would buy sapesee Mexico 9307 n-4do 
£H8m of assistance vas pro- i . ca tegcrv paper maturing 100 cor. Austria, ssis^xie 


b w L P" ^ Wj-aTHi* Viewrliii^q 896-97 

in Pans the Bank of France preneh 29* *78wx 


1 

(£193«X0U1 $371,-381, 

(£1841,-185 la) S363-354 
(£44-44 lg) 5831,-831, 

(£5212-53) . £99.100 

(£521,-55) S99-100 

(£43-4818) $82-92 

itZ17*A'»lBU) S4S0U-4Z3J* 
i£1715*.175lO S3 32- 33 5 
l£2571a.260i») | $478-485 


S352-355 

$ 181,182 

£92X3 

£371,-381, 


£ii3m of assistance vas pro- fiR;t ca tegcry paper maturing 
vided, makins a total of £U5m. Ytetvreon March 21 and 25 at an 
Outright purchases wore. £24m. ..Ranged iniervention rate of 
made up of £12m bank bills in 14 per cent _ This wHI tempos 
band i at 13} pw cent, and fi«Jn apl j v inject about Fr 4bn of 

hiriV T*m» tn hanll 7 ,15-33 davs) r. CVlATt. 


820 Eaglet 


33131,-316 

£470-475 


(£1861,-187) 
(184 1,-1 B4S«) 
(£184.953) 
>£186X39) 


(£19113-192) 
(£97 1,-99) 
(£50-501*) 
(£201,-31) 
(£192-1921,) 
(£454-4514) 
(£53*4-544) 
(£534-534; 
i. £44 1*80! 
(2284-230 4) 
(£ 804-18241 
(£260-2621*) 


In Frankfurt call money was this was broadly offset by an 
little changed at around 10.05 section of DM 8 bn from a new 


band 1 at 13} pw cent, juvd ar jj v inject about Fr 4bn of little changed at around 10.05 wecDon m im sm from a new 

bank bills in hand 2 (15*33 days) into the market. Short- per cen t. The unwinding of a , s ^ ep ) irc ^^ e T j agroement 

at 134 per cent The authorities ratps were sli'chtly v T*, JT * “ . tendwed last week. Bank borrw- 

alsoiUStlSihif&atlSiper 

cent.: for repurchases by the J^ Dg to per cent from 1« drained DM, SAbn of hqurdity facUity rose to DM 3.3bn on 
warKe't on March 31. ... Sr cent. from the banking system, but Fnday from DM LSbn. 


Wflrttet oo Msnfli 3i. nhf coot. 

. The. help was completed by 


-i 


lending fS4m 1o four or five dte* 
Munt houses until tomorrow, at 
14 per cent. This was seen as 

houhy^rates 

NSW YORK 

Pnmt -f»ti 16-IP,^ 

^.-fUAd* Ihuich-vtne) 13V13 : « 

JrMeuiv bilKi na-vraefc) 12.0? 

"raaimy bills (26.wMk) 12- 14 

^RMANY 

spwwl Lombard 10.00 

yraraight- rats 10.05 - 

month 10.075 

”«■« month, • 10.075 

mamhe 9X0 

fRANCfi • M 

•"tiHventipn rate - 14*52 

One month 14,128 

Thrap.mmiin 14 ‘2S 

S'* month,- M.125 

JAPAN ‘ 

“ittqum rate B - 60 

•S|Jf (uncomiiiional) 

diacotmt (ihtM-month).- 6.w 1 Z9 


LONDON MONEY RATES 


.Starling Local Local Airth. 

icartitieata Intarbankj Authority negotiable 


I of deposit 


! deposits bonds 

Ov.ml^it ; - jwTTsTjl^IT - - | Z - 

2 day* notice..! — • _ — | _ j _ j — — 

7 day# or..-..-...; — I — - 144-144 15 4-13 1,! — — ~ 

Tdaysnotlqa 1 - I 141,.1S3 4 134 J37 B -14 ,124-23 1ST, 

Ono month......; 13 sb*1| A **,« ; T 14. 1SS8 154 134 134-124 12{4-12t 8 I2rt-18» J|»* 

134-134 < 13-134 -134*131, 13a, 134 124-124 lan-UAJiaftlAH IS* 

Tltrao months. 13.*-l| i$. 13 u 13-134 15-4.12T, 138, - - J - lBU 124 

Six months ipf i 3 u 134 - 134-134 13a, ~ — — — — 

Nlnemontha..- lOM*}2jg J JI J ls 134,-1318 13s, - - — - 

Ono year — • * j 131s ( __ — — i — t — — 

Two ^ l — — m— — s— *— 

~ and finance housea seven days' "otic a. others aavan days fixed. Long-term local authority 

Local ®“*J'0 , 't'M " 13 ^ cent: four years 13t,-13 r « par cant: five years 12VM P«r cent. ® Bank 

hJlTws KbC toying rate* lor prime paper. . Buying rate, lor four-month bank bills 12*4,-124 psr eant; four 

months trade biiis 2, 3 ,l? 0 P «,M n Vor ona-month Treasury bills 13V13*» Psr cant; tvib months 12*».12V per cant; thrae 
Approximate se B Approximate sailing rata for onu-monifj bant bills 13H» par esnt: two months 11PW12»n 

months 12V12-J* P» r Somhe 124 par cant: ona-menth trade bills 13*. par cant; two months 134 par cent: thru 
per coni aind “ ni08 munui* ’-■» ^ f 

mnnrhs /published by tfis Rneneo Houses Association) IS par cent from Msreli I. 1582. 

F, nan«. H O u9w B«o^ 0 W, IP«™« ^ . noliefi „ pir Mnt . Clearing Bank Raws lor lending 134 par 

Clear.ng Bank Dapwtt MM rar sum. rfliM of di ; Munt 12 .4972 per cert. 

""c n'rSwMrf *2 Deposit! (S«fiS 5) 14 per cent from March 3. Deposits withdrawn for cash II oer bent 


134-1338 1 
134-134 j 
13-134 
134 134 


14.13^ 
13-134 134-13*9 
13-134 154*137, 
- 134-134 

13 134-134 


"Finance ;Disoount. Eligible 

Homo Company Market [Treasury Bank 

Deposit* Deposits [Dapcsttsi Sifts ♦ Biffs ♦ 

— 144-143,134-14 j — — 

- 144-144 13 4~13 4- - - 

233, 137,-14 ,124-23 '13,1-13*1 13A 

134 134 .134-124 12^-12T 8 12^-12® 

134 134 124-124 124-12t%; 12^124 

138, — I — 1 — I 124 


FT UNIT TRUST INFORMATION SERVICE 


OFFSHORE & 

OVERSEAS 

FUNDS 

AxSq Investment 

Postf«h 706, 8000 Murnre 1. T*Im S2«aW 

S5Sfr-.-T-.dS3 RSI = 

Albany Fond Menagemnit Limrttd 
P 0. Bor 73. 5* Hriier. Jrr»>. Q5?t 7773? 

MturySFa<CH .. fiCCaiH: 163 62] ... I 216 
Nee **'1*3 tore 12 

Frv (Ururerr Fond str UHWU Bari, Iral Gwnor 

Allen Harvty & Rw» In,. Mgt. (C.l.) 

1 0wing Crou. Si. HtiiV. J»y..C.I. 053S-73M1 

4SSBB;v“:HHPil«KaEii 

Alliance International Dollar Reserves 

co Banr of Bermuda. HxnHMa. Brmula. 

Adv- ACM 1, 62'63 Quren 5l EC4. 01248B881 
Dffuibutini March 1 7 (D.002U3) 117.7% pa> 

Artuthnot Securities (C.l.) Ltd- (a)(cXh) 
P 0. Box 38*. 5 l Heiier. Jcney. DS?4 76077 

DoUer Inawe Ttf. . .»W »J*. 

l m M AS 

Dealing on MMnndn. 

B.I.A. Bond lii vetU nBits AG 

ID, Baanruraup CHbJOl. Zug. Svnt.-rrtttd 

Bearer Sffl. Feb 19 .110,16$ 10700 J - 

Bank nf America International SLA. 

33 Bauleuam Royal, Luumtturg G D. 

WUDn«M liun* .. IISU3U4 11D701 11054 

Prices a Mam 4. Ne* 50b. Uadi 10 

Barclays Unicom International 

J. DarwgCrera. SL J«r*rv D534 73741 

ItaSSKiSTTlUn 1H “-IS 

Do. Aiot-Mln. .... . MP -. 250 

Do. tjtr Paafit UJs 1SX .- — 

Do Ind. Income- .. . 29.5 3LM .. 1D.OO 

Do. Me of Man Tv._ «U u£3 10.* 

Do. Man Minna) fio.7 50301 ... 1M 

Bnhopsgate Commodity Ser. Ltd. 

P.0.BCB 42. Dowlas. loM 0624-23911 

ARMAC* Match 1 57 03 1 — , 

COUNT- March L ...lOJgg 3 «a - J 1 S3 

canrho*- March i.Eptra tag . — 

MAPSA- Jan. 4 .. . P9 73 10 3«t J — 

Original out *510 and *-tL New Ml Apnl 5. 

Bridge Management Ltd. 

GPO Biw 5W, Hong Kara 

NTHihl March U. s ...| V2&.600 J | - 

Nippon Fd. March 3.. I USS2m 22M .. J 122 

Britannia Inti. Investment MngnL Ltd. 

SLawer** 51 

Grtd Fi#W 

UniwmlGreiih Fund . 

Dollar income Fd „ 180.761 05 
StcrBn, DmutoMed Funta 
Amercan Imesmrnis. [46 4 50«| .. | 4.00 

Australian Peri. Fd 
Far Hail Find .... 

feSUl 207*3 ittll 1345 


S.G- Europe Obligati om SJL 
9. Avenue » la l Write, Lumrinurg 
Londcn Aomi- PfS Sainbm Hv Louden WWT 
EC2M 5TA. Tgl. ol-TOSWt. Tfinr 887281 

EufWe-fWrgKiri*,. | (J5S«42 IBS 

Euro tax Invcstraents Ltd. 

1. Athol 5: . Douglas we of Man. 
llKAgmb FiSTSl Albans. 0727 33:66 

Ei/fOta-. Im. Fund™ . IU4.7 2I0.» I - 

F & C MgmL Ltd. tnv. Adrisen 
1 Laurence Poumney Hill EC 4 01-6234440 

F&C. Atlantic Fd SA I USS971 I I 134 

F-AC-OncnulPd... I L'551933 I - I 054 

Prxn Maa 3. Weekly dealings. 

Fidelity Internationa. 

8 Queerwaay House. Oueen Si.. SL Hel^r, 

Jeririr. C.l. 05317:646 

AevriCAi Aston usswat -C43 LSI 

An vat Con Pi M*. 1JM50 ...71 i* 

Ammca^Vah Com.". El 37 J — 

Ausuaba .. USST46 - 01)1 — 

tonar Sawras Trey USPWiM rCOfl 13« 

Far East U5E7.88 -DIM OTC 

Iririnaiiooai USU4 41 073 

Pacific . . . US$89 58 -wa 033 

WbrW Eg? 916 JIB £« 

Gilt Fund.. .1224 2261 rO 11 118} 

•Pricr. at Fftream 3. 

Fleming Japan Fund SJL 
77. rue Notre- Dame. Ltnmttourg 
nrmmsFrtjSa. — 1 US65429 J. ! - 

Frankfurt Trust Investment— GmbH 
Witsrnaii 1, DJiOOQ Franhlurt 
FT-imerains . . .ISUVJI 3833-30 - 
Frank! L. Ettria Fd . |DVs3Jd 56591-3 J3 - 


1 | 1L40 
230 


Free World Fund Ltd. 

BuflrH«rM Bldg. Hampor. Bmnudi 
NAVFeo28. .1 USS147.42 i .... ] - 

G. T. Management (U.K.) Ltd. 

Fti*kHse !b FrtBiiufV Cirrus. 

Tel. 01-628 E03I Tlx. 886100. 

London Aqems (or 

Anowr Gilt Ease 890 8WWC?i 141 

Andur Ira. Fd. USSro* 73 - . ZS 

Berry PacFA ... US36104 04 

Bercy Pat Srtg *j4 1 S_ 4 3160 09 

G T. Aw Fd HKS1936 L3 

G.T. Asia Sferiim £26 Of, . la 

GT.testraluFtf . 4V&.0I 30 

&T. Bond Fund . . . ttSft tS — 

ST. Dollar Fd . USS1L13 . Li 


Leopold Joseph & Son, (Guernsey) 
Hir.-PiCj.5s fYierPort.Goriraejr 0481-26648. 

U-SwrlmsFuas— 1L14JB - 

King & Sluxsan Mngrv 

I, Crif dig Cross Sc Hrtier. Jersey. IQ5V> 7-1741 
L'allrv Hie . S: Pent Port Grmf. iCWl' 3W«i 
1 ttomis Suw. DwbUL i O.W , ■««« >«8gp 

Gilt Fund i Jersey 7 5l T?ti J 13 M - 
GtfrTnfifdaM M56 W-la -*23i 13 25 
(Wt Fnd. GuwtwyiiJM 7fM . I 13 3) 

S* T f*!L16-22 16311 .j — 

Fm uni. &»43 204 45j I - 

Kleunrort Benson Group 

PV FemA«iSf.n:3 02-«JfitWJ 

Gaemex lac _ . . iBRJ OJ.ffl -1 ul 581 
» Actum n?«n U6j -n Mn 

M 

IC.B Gdl Fund iQir^ 46) .... 13 TR 

(CEUra.BaF, ik . USSM65 10i2 

K.B. in Bd Fd. A U. ua3iJ« ... iau 

KG (ml Fine . . . OSSIS lfl ... £77 

KSJoinFana Upflo? .... OK 

ICE. StritAiie: FA .103^0 13 710 . 
K.BU5CwUiFd USSFOW ?« 

S,5HriBeniwn_. U5S6 47 

TraraatlAntK Fd — USWoTlagd *OOH 236 

Korea International Trust 
Fund Man.: Korea Invest. Trust Co Ltd. 
c o VitiriS aa Coxu Lid. Kmg Wjiiam Siren. 
London. EC 4 01-623 34*1 

Marcrt B. NAV Wen 7888 01 10R Vrtje U»11.0t>. 

The Korea Trust 

Baefian Investment Trust Co. Ltd. 

FKI Buildin, 1-124 VoriCKBov. Seoul. Krina 
NAV March 6 (Won 2L431> USSlbfK) 

Lazarri Brothers & Co. (Jersey) Ltd. 

P 0 Bo> 106. Si Hri.rr. Jrwy, C I 0S34 37>1 
L« Brm Iw Can 4lBS8Jri 94M I IDO 
LL* Bun '.Him . 16 00 


CT.Dir.iSirtg.iFA. U-JIN 1JA7 . J S6 

li T. Inws. Fd . . .. osslS.ao . Obb 
GT.Jwm Snell Cm. USSlkb? — 

8T.R3*^-. ifa38 • ns 

5 T. Asean Greoui Fd. LE5S4U 053 

Gartmore Invest Ltd. Ldn. Agts. 

2. Si Mary Are, London EC3 01-283 »31 

Gartmore Fend Mnqm (C-l.) Ltd. (a) <h) 

41 BrpjdSL.St-HclierJeriey. 0554-73741 

Gifi Fund UriSey. 1 . ..Bi ™ 87 M +20(13 3 
MM Fad Miagrei /ftr Cad) Ltd. MM 
1503 HurchAor- Hie.TTO Harcvm Bd. H Kan: 

Australia TsL |(1SW1« 5 187 -dim 130 

HKAPac-U. Tp._- »Mfc«W 0885 ... 2.% 

Japan Fd KBELW 228*5 .... 0 Ml 

N. American To. . .. IEHK541 19906 . 0 50 
Iral Bond Fund . ..IlSSQKR 10.5401 . 9t0 

Gartmore Find Manaqm (I0M) (a] 

P 0. Bo, 32 Douglas, fifeof Mai Tri 062423911 
Gartmore Inti Inc .1209 712! . I 15 ID 

Gartmore loti. Ertti. .U33J 1418 . . I ObO 

Assicurartoni GENERALI SjlA. 

P D to 132, St Peter Port, Guereuy. C.l. 
SrrrlmoMaiMedFilltmffi U&UI I- 
OolUr BogdiFiM-- Jusiaibar 110 551 . . I - 

Granville Management Limited ' 

P 0 Bor 73. St. Hehri. Jersey. 0534 73933 

GMWVjJJeliw.T*! . 1U.P4 7021 . I 463 

Neit OWmg d*r Mar. 15 

Guinness Mahon Fd. Mgrs. {Guernsey) 
PO BOr 188. St. Peter Pert Gucreser. 04K 23505: 
Ind. Fund - ....IS1992 20541 1 1040 

Pncm a March 4. Neit drama March 18 

Hambra Pacific Fund MgmL Lfat 
2110, Comaugtrt Centre. Hong Kong 

W :.:..l = 

Hambros Fdl Mgrs. (C.I.) Ltd. 

P 0 Bo« B6, Guernsey 0481-26571 

tC4>uiRHri»eFd..UJ«44 14J5} 023 

C.l. Find -. 2084 232.6 .... 3.08 

Special 5tt3L»Fuiid HL3 „. mma Iff 

Sied™ Ircome Fund ~ 1032 IP/ 7 13 93 

TramTteL Trust SO 93 Q972 309 

I rent Bond (95.08 lOTffl .. .. 1055 

InL Etadty 1A74 1552 .... 0.72 

Im-Syst 'A-SUS... U2 it; ... - 

Inc. Sw» -fl - . _.L58 LW . . - 

P*fc»- on -March . Next drahU March 10. 
lOdudes initial dorge m vmti ordnv 

Henderson Admin. (Guernsey) Ltd. 
7Nria5( , SL Peter Port. Guernsey 0481 2654 L2 
Amencan lUS omu. 1114 0 120.01 ....I — 

Henderson Baring Group 

801. Gloucester, 11. Redder. Hong Kong 

jaSri TediTMarcti" 1“ vMi "!"J — 

Japan Fd Marcti3... USS2&.42 2&ZS - 

Malay Sing *Mar2,. lTJB 1935 — 

Pacific Fd March 3— XStigH? 12.802 
Bond Fd- March 4_.. (£01*77 1Q995I . ..] KLOO 
’Inchaite of Pmlimmy Ctege- 

Henderson Management (Guernsey) Lid- 
PO Bor 71, SL Peter Port, Guernsey. 048126541 

Gitl Fd.1 It927 9JB| .._.4 12.73 

tweridj deatngs- 

Hili-Samuel * Ca. (Guernsey) Ltd. 

8 UFriwre St, St. Priw Port. Guernsey. C.L ‘ 
Guernsey Tst. 12033 075)40.91 350 

Hflf Samuel Investment Mgmt IntnL 
P 0. Box 63. Jersey. 053*76029 

US Channel Is rd.™ 11462 155.R -051 ,35 

H.S.Fatlrt.Fd_ ..MO WB3 1356 
Hi lmnl.GllvFnd.llK2 1194-09) - 
Bo> 2622. Beme Smtreftand Trier 33425 

H.S.0»ersea*W-.._luSOT_3 2L61)-fl(B) — 
<&Fd.(Bg*H&l.,tSn785 1&23 J - 
CrmiHMjFto EaMI.ISF5.56 "575(-BjO( — 


imu 7.88 

— J 1360 


12.921*0 OB) 1125 

WS& 25 

“Tuesday WeeUy-CatMal Retire 129r3. 

Brown Shlpiey Tst. Co. (Jersey) Ltd. 

P 0. Box 583. St. Keiier. Jersey 053* 7-J777 
Steriing Bd. Fd. un ..[C.9.11 Vlbd-riUUl 13 91 
Swing Cap. FdJ (ai . |£13 93 • U94) . ... I - 

Butterfield hfanagement Co. Ltd. 

P.O. Ba» 195, MairaKon, BetmcUL 

Prices at Fib. L Mm 5Uv day Mar. 8. 

CAL investments (loM) Ltd. 
lit SL George St, Dastas. IDM. 062425031 
CAL Entity. AGrey-JOJOB U6fl . J — 
CAL Meial - IBLB 86a - 

Men deUmg day "March 15. “Apnll3. 

Captftrex SJL 

PO. Bo> 178, 1211 Geneva 12. 0104122 466268 

Mra 

Capital Asset Maugen Ltd. 
g ssg « r .SL JJ * s ^. a .r Si5lS | ie 

The Currency Trust. .195.0 1010) J 0.99 

Capital International Fund SJL 

43 Boulevard Royal. Luaentourn 

Capual Ire. Fund... I USSS.79 HISS - 

Central Assets Man a gement Ltd. 

Channel Hu, St. Helm. Jersey. 0534-73673 

Central Assets (£21213 ZL2J5)+42ti - 

Charterhouse Japhet 
1 Paternoster Row, EC4 01-2483999 

ussr^-'.-dWt » 

“Priaa at Feh. & Next sub. thy April L 

Chawton Commodities (Isle of Man) Ltd. 
29, Atom Slrert. Douglas. I 0 M. 0b2421724 

aH 1^^ j 

Canfc Ctrewxy G Gdl£t0549 L1104) ] 500 

CorohHI Ins. (Guernsey) Ltd. 

P 0. Bqi 157, SL PeiiT Port, Guernsey 
Irani. Mwu Ftt (2250 W50) | - 

Cortex* International 

10a. Boulevard Royal, Lurenftourg. 

Conexa Irani 1 USS7B.93 |-0£4) — 

Craig mount Freed InL Mngrs. (Jersey) 
P.O. Bo« 195. Si. Hrtiri, Jersey. 053477561 

Gill Fund LKy 1 .. 1865 , MM I 15.00 

wired weekly Wednesfty. 

DW5 Deutsche Ges. F. Wertpapimp 
Grunehureweg U3. 6000 Framrfuri 
inmta I DM3054 32101*005) - 

Delta Group 

P 0. Bo* 3012. Nassau, Bahamas 

Dell. Im. Mar 2 IUSS308 1231 ..I — 

Onlan Agms. Wetmwrt Berm. Tel: 01-623 8000 

Deutsche r Ihvestment-Timt 

Poslfach 2685 Bwhergasse 6*10 6000 Frankfurt 

Content ra _.[DM16.« 16Mv1U» — 

im. Remen f unds lafian w.tm ... 1 — 

Dreyfus Intercontinental In*. Fd. 

PO. 8ot N3712, Nassau, Bahamas. 

NAV March 5. IUSB574 27 44) | 

Duncan Lawrie Inv. Mgt Ltd. 

Viaory Hsc, St Peter Pori, Gueresey- 0481 29034 

DL Sterling, — 1914 .. | 6.00 

DL liHritiatlonal IU.M llli ...... I 5.5) 

Eimen & Dudley TsL MgL Jny. Ltd. 

P 0. Bo* 73. St. Heliri, Jersey. 0534 73933 
ELOi.C.T. {1188 129.7} — J - 

The English Association 
4 Fore si reel. EC2 01-5887081 

£A Income Fc.“ (6290 67 (W .... 7 J6 

: T s 

WartlgaieCm Fd."* kloOl ]666l . 300 

■Nwj tiering Mot tr w. •‘Men dealing March 31. 


„ Trie* 33425 
2iw-ata — 

1 


Eurobond Holdings N.V. 

Pietriiiaai 15. Wlllrinawd. Curacao 

LonSvi Aq^nti Intel I .‘3 Hb4n 5t, London CC2 

Tel. 01-638 6011. Trim 881440ft. 

Euro HW94— _...IUSSaW0 2U11 .1 9.50 


iTF^rreauioSy>|usnDW ml-oxw) - 

I. C. Trust Managers Ltd. 

10. SL Georges St . Douglas, loM 0624 25015 
lrt.ConwiwdibcsTM.l97 6 1038)4-331 — 

Hen dealing day Apd 7. 

I6F Management Services (nc^ 

CJO Regmrarv.P.0. Bd* 1044, Cayman Is. BW1. 
iraend. Gold Fund — IUSDS43 6156L-M1) — 

N.V. Intertiehe e r 

P.O. Bo* 526, Drill, Holland 

EsnwrahtiiOflriPceiiOFligJif - ( 4 293 

International Bond Trust 

Z Boulevard Royal, Lmenenurg 

Na* March B 1USSU49 10.49|*0i>*l - 

-International -Pacific Inv. MgmL Ltd. 

P.O Bow RZJ7. 36, Pin Sl, Sytiw, Aufl. 
Javrim Equny Tk. — 1AS3.12 3.20) I 7 50 

Investment Advisors, Inc. 

First fntematxmai Plata. Houston Texas. 
Finonvc Invest. Fd. j — L36M J -- 

UK Agents. Janes Flnb. Tri 041-204^1321 or 
Sterrtberg ThTOs Claw Tel: 01-247 8461. 

Invicta Investment Management 
1 Charing Cross, St Holier. Jersey. 0534 73741. 
Gilt Growth Fund . ... (U082 11 ... 1 333 

Grfl income Fund fS.43 8kfi — -T 1339 

Jardine Fleming & Co. Ltd. 

464(1 Floor, Connaught Centre, Hong Kong 

tfiaV;:-: -RHS = “ 

J F Jaoar Small Co. . <Tl5J7 - -TV* — 

J F jfljanTeiiwrtDgy. — -523) — 

J F. Eastern Tst aial 1 # — -68 nil 190 

Do lAtxtre.) . . . H>S7479j — -rfMj — 

J F Pac.Se«4 llnc.1 0SS439 _ -039 110 

Da (AcciuuJ. USV-tO — CL3fcn — 

Jp. Mini T« u§8% - -OOfl 030 

Do I Accural ...: 03398 — -ODbj — 

J. FS.EA 0333 23 - -13 180 

Do. lAiAvm USS3376 — -27R — ■ 

J.F PKI. , _ ... USS7 12 - -013 690 

JP. Cw. iBdFd itnc 'iSSUbl - riJlM 430 

Dc» 1 Acorn i . . USSU'ifl — +J5J4I 

Jaoan & P*rfc Crarta iSllfl? — -033j 490 

AtsonHaTa. . . osj&jj — -PJd — 

NAV March 8 n»,t draima dav March. .15 
London Agents Rob). FleraBij & Co. Tri. 01 28? 3400 


Iral. Equity Fd .JUSfiJ3 LW . _ ( — 

Prices at March 3 Newt dealing March 10. 

Quest Fund Man. (Jersey) Ltd. 

PO Bar 194, St. Hotter, Jeney. OS 3427 44 1. 
Quest SMo. Fnt lnt._MM7 0.727M .—11238U' . 

Quest iniTSKs. nraaai .—.I~l30 

test Inti. Bd. .ll®7K ossa JUBMl 

Prices do March 3. Newt dealing Starch 10. 

Quilter/Hemflld Commodities . 

31-45, Gresham Sireri. EC2V 7LH. 01-600 4177 
Rest. FCim. March l.BmM -15001 J - 
Krfl dealing tale Apnl 1. •Intenm. 

RBC investment Manager* Limited 
PO Box 246, St Peter Port. Guernsey. Q481-2302L 
iral. Income Fd. ........ |lSSA.9b ..9351 . ... ) — 

inti. Caoial Fd 1D6M J — 

Norm America Fd..... 103425 47a 4 — 

Raminco Managers Ltd. 

P.O B» . 1549, Hirttn. Britnuda. IB09-291 2-7979 
‘RAMINCO March L.IS8.90 9.181 4 - 

Richmond Life Ass. Ltd. 

4 Hdl Street. Douglas, l O.U. QW4 23914 

The Silvrr Trust 11582 166.« -3JBI - 

Da Diamgnd Bd .. -..[762 ..81 .. .1 

SterLm Drjwul Bd ..ll4444 1S?04) ... 11418 
AUas Gin & Com. Fd.|74 J _7 BD| . I - 


129. B +0.4| _ 
140.1 I". 1 1067 


UK Gill Fund 
SapohireTnai. 

Petrerttin OH Trusi- 
Managw Fund 
Cow Trua. .. 

Rothschild Asset Management (C.l.) 

PO. fth » Si. Jrtma.Guetroa 048126331 


OC Airenca Fd.T— 

OCSai-Co*— 

0 C Commodity.. .. 


030 O.C. Olr Cnndfy T ...l! 
_ OC.HOogKg-Pd.ft-11 


--0.C. Intcraathmal 
Bet. Frans iFra. if 735 

Canadians I 3L 

D-Mark 46 

Duldi Guilder .. 
French Francs. I 125 
tP licet or Marcfl 


^^•{Srifrl •j ^3 

...l JL«S (Singapore S . .( 579W 

... CsWiTra 12352 

.. tt««J BwtssFrana .. 439S0 
. I 1»WI Tu S S I 25220 

Marco S Nnt dutng Utrclt 2?. 


tPVir.r«, <n Fhi 26. Nril ririwg March 12 
uly dealing, •■■warch 3 TtDpiTu^, n <w BnvW 


Save & Prosper International 

Dtulwq tn 

. P 0 8s« S-*. Hriiri, Jersey. 053473933 

Plied Interest Funds . „ 

• Onutv.hnurii Bd "J ,{D*.tt99 9fM - I '77 
Our Ful jnt";..,..ju5V4 - rofl 10M 

Si.Fiied*”** . . finsri 1«0 - - . S2J* 

rroBond**; .. | VI 209 J.J74| - -[ 592 

Frew. t U Flfllft 

UhGrcM?riF:irct ...(95 4 ID } y . J 256 

Intfoiall.Gr.-: rvu J031 - 

Far EJEJernl. JoSlsrk ]iOV-C3m — 

North Amrnun*:. ,. ISA549 h» \ — 
Sepnt. juiis: — 

SjUmSrtJ.lEj* Ijni 0 Tlrihri ... ) — 

Gold Fund-— lu3H21 L<SUS M . . - J 633 


S^dSwi?^* 11519 15711 *CK Ola 

•M-vlid ■■Mjn.h 1 

—•ttva 1 5 «-"6tjrcJi <1 irtkvs'. oralina.) wJy 
dnl'njv. 

Sc hr Oder Life Group 

tmmnceHai'.p. Pnrmwwdi. C7K-27733 

International Funds 

tEBJili .. .. - IJ09 !**•) • ” 

SEqu.U . . , 23: Cl* 2 lrj<| - 

t Fi«d iMriri: kWA - • — * 

jFnpd intnrM UbN 'j* ■ JIJ • — 

a Managed. . . . [Mi IfM’l — 

SMaiagM ifittsTl U961 . — 


W2I • 

2,16 « — 

= 

m. - 


Schroder Mngt. Services (Jersey) Ltd. 

PO Rcu 19 C-. Sl Hehri. Jpr-re 05.VI 27561 

SirrimgMimFd.. li4»Kffil2048tt J — 
Neal ■odsjipiifi Uty Mjp;n 10. 

J, Henry Schroder Wagg ft Co. Ltd. 

1A anvude. EC.' 01 rsBAOW. 

Am In T».r March 1 ilMl-r - '-C2S 19? 
Arfn f and March I . J»H M J Z<*\ 
Cneansuip March 5 I ustHfo l-P..* *;! 


Ltayds BA. (C.l.) U.<T Mgrs. 

P 0 Bo. 19f. Sl HriJiw. JreV 7 . 0S.« 275#<1 
U 0 YtaTn.&-u& |7B A B1M ... .J 147 

Im drain* date Maim 11 
UoyOiTruii G.II .KB 97 8 98) 1 13 75 

Neil onheg Bair Feriuiry 84 

Lloyds Bank International. Geneva 
PD BO> 438 1211 Geneve ]1 l5mlrriUnd< 
Llovta Ira Gro-th (SFS69D 60i «» .. . I 07D 
uoyaslm.lncarr*. . [SFSIM) ... I &0 

Uoyds Bank International. Guernsey 
PO Ben 136. Guernsey. Clurmri loanth 
Alerandrr Fund I U5*]l 76 | .. . 1 — 

Nn «»« value Mvth L 

Louis Dreyfus Commodity Fund ' 
c o Trustee. P Cl Bor 109? Cavnun IvUuvh. 

Fet> 2b. Value per Uhli U5S4.941 4& 

M ft G Group 

Three Quays. Toner Hit! EC3R66Q Ol-riTb 4 C A8 
AtiamcE. March?. USS54A 58* — 

AiBtram. Ei Marcfl 3.. UWIV *61 . . 

GoME' March J . _ |B& PS 25 62« . . 1251 
lAtxutn llfHts 1 . ysSTih.' J7.95 12 51 

Islam THO 184 4 *P 4 4 26 

(Ature tints.’ - . 278.6 295 J| tOM 4 M 

Management International Ltd. 

Wr ol Briiran* BMg . Berribda B0929S4000 
Bos iral Bn F& Cao| ussi2gg I . I _ 

Beta Inti Bd Fd IdcI U31070 I t 1200 
Priori on Fdx 26 Nnt deal mo March 5 

Midland Dank TsL Coro* (Jersey) LtdL- 
28-34. Hill Si . SL Heller, Jfriev. 0534 362P1 
Uul Dravntn Gill. .1930 91 q -05) IMS 

Ud Oayiao I bl Bern |uSSL» XW .... 1 9.17 

Stanuel Montagu Ldn. Agents 
11a. Old Brad SL. CC2. 01-5886464 

Amen. Cq. March 8. ..(456 480) . — 

AoolloFa March 3.. srati> »M - 2« 

JarieM Feb 2 b. ■ —HB2194 23.W . .. 031 

n7&rtMi Feb* _.. 12.80 13fl ... 187 

li7Jnse»FMiZ7. . C7M 7 7! .. •_ 

117Jseybt.Frt.10 6.12, .6*5 .- 170 

U7SUg. Res.Mar2.pl 67 llbS - 

Minerals. Oils Res. Sirs. Fd. Inc. 

- P 0. Bo» 194, St Heliri. Jenry 053427441 

MORES March 4 . .....IUSS8.93 9411 ... J - 

Murray, Johnstone (Inv. Adviser) 

163. Hope Sc, Glasgow, C2. D41 221 5521 

fS3ic Fw^FriJ^j u^wo3 f !!...J — 

Nat. We stm in ste r Jersey Fd. Mgrs. Ltd. 
2325 Brad St . SC Hriwr, Jersey. 0534 70041 

SE-Sfl II 

'SuS. dry rwry Tinas. 

Negit SJL 

Ida Boulevard Royal, Lnyermourg 

NAV Feh. 19 IUSS92D - | 4 - 

ff.EL. International Ltd. 

P.O Bor UP. Sl Peter Port, Guernsey, C.l. 

KRRRi=H Sir: r 

Intnl. Managed. 59.7 649) — 

Pacific Basin Fund 

IDs Boulevard Royal, Ltnretrtwurg. 

"InrieZl J*futiaBT 

Phoenix International 

PO Box 77, SL Peter Port, Guem. 048126741 

ItUrr-OolUr Fund (USX29E 323\ .... — 

Far East Fund- ...— 1^*7 267 — 

Inti. Currency Fund... 1USSL75 1.89) — 

Dollar FwL InL Fund. 1^267 2.M — 

Sver. Exempt Gttt Fd. (0-57 i./Ol — _ 

Providence Capital Life Ass. (C-L) 

PO Bo* 32L St Peter Port, Gurinwy 0981 26726/9 
Sterling Bond Fd..__M5J) 473) I — 

H|d- = 

Inti. Equity Fd ...JuSlLU il9J . - 1 . 

Fran at March £ Next dealing March 10. 


Japan Fd. MatTOJ iBW-l 16^ 0» 

Trafalgar Fd Jan 31 I USV224 an 1 ... 1 - 

Schroder Unit Trust Mgn. hit. Ltd. 

Bu- ?73 Lt Prlnr PW. Gun C*Ml KTPfl 

Mnid Lumi ... ■«? 4 51119 ] 731 

I F..rf lulmr.l VJi -'.W , SJ2 

L Equity 'ri9 I 2 - "* 

SFurcllnirir.l . H) 1 

5 Equity iHl B9U j 1U 

Scl L 'ta i Life Auuncr M Ltd. , . „ 

Miral CunxyL'IrFo 4H) I Ml Q ! 7 91 

1 Furt mi 1 Jr Fd. Wo 7 Vi.’ra • Sl; 

1 Equity L. re Fd . <N«i 1PSW 37n 

SF»i«linure Fd Id- J . n*t 

S Equity Lilr Fd flU H9l! I ILL 

Pivm Oil Unh Nril drOLn; Ltirch 10 

Scrungeoor Kemp-Gce Mngmt^ Jersey 

J . Charing Cnr.v 5t. Helper. Jmi-t 0^ H ”77-11. 
‘.KG Cental Fund imiJj ; - 

SKG IIKranr Fiuvt pit i ii4{ 1 917 

Wn Bono . . Ul 10 9 1252) 1 - 

Sentry Assurance International Ltd. 

PO Bqi 177b, Hanutlni f- GinnKSa. 
sUiagroFind. . .U3tf9 51^*4 . . I — 

Signal Lite Assurance Ca Ltd. 

rCSH)FUiy5Lw Cdholiar OJOJS'TTCI? 

Cnwtn SuairiHrii Fd IL232 232] I — 

Sinqer & Frietflander Ldn. Agrotv 

20 CjmmSt . EC4 01-243 9646 

IMcaforah |WfiTr .7339) | 6 S 1 

ToCyoTu Match I { VDS*Uti I . zod 

Strategic Metal Trust Mngrs. Ltd. 

3 Hill Sum. DwnLt. IOM IW4 23914 

Slialrqic MrtalTr (U3P4* 0T0( ( - 

stronghold Management Limited 

P 0 Box 3H-. Sl . Hrl-t. J rr#r 05.14-71460 

Comneduy InoL.. .113401 141 (Hd .J — 

Suri rarest (Jersey) Ltd. 

4. Hill SI Dowglu'-. FJetd Vvt rTV.4 

Cupp.-* TwJ KU 99 12h.1-il.-4l — 

TSB Trust Funds (C.L) 

10 Wlwtri Sl . Sl Mriiet. Jrivr (Cl • K-LI 73494 
TGB Gill Fund Lid. . wn 41 ra »24 

TSaGillFlLiJyy 'Ud Wil 9lfll 14 29 

TSB Jetvy Fund . 564 5.0 4rf . 6 7.' 

TSB Giirnwy Fund Ibn4 594iq _ 5 

Price, on Lurch .1 Mr if vA an Atircft 10 

Tokyo Pacific Holdings N.V. 
liHimr, Umaqrment Co N V , Cnracan 
NAV per uwe. March 1 U5S32C7. 
Tokyo Pacific Hi tigs. (Seaboard) N.V. 
lidsciM UanagcHrml Cn NV. Curjcan 

NAV pet share Much 1 US $69 H5 
Tyndall Group 

2 Nri* St, SL Nriler. Jersey. 0534 37331/3 

T0FSL"March4 L 11.15 11911 163 

I Accum shares'. .. U450 2P75 . - 

American Starch 4.. . 142 K 1514 196 

tAccura shares 1 ..15B.4 leRf ... — 

Far Etalrtn Mar 4 . 131 0 L«f 114 

(Auura sluresl 134 4 1482 - 

Jersey Fd. March 3 .120.4 129 D 84b 

■ NtKKj.Acc. IIU.I. . 2346 2512 

Gilt Fd. March 3 
(As cun. Sluml 
Victory House. Do 
High Inc G41 March 
1 Atcuti Shares' . 

Managed Frt. 18 


nhrarWM 

12 *vT-, i.-4( _ 


07-31 77494 
I 14 J4 
14 29 


0534 37331/3 

1 1 i*3 


Equity Feb 18 .. 

Fued irteresi Frfe 18 
Property Feh IB . 

Managed lira Frit la 
Evilly lidl. Feb. 18 
Fiied V Ind. Feh 1 
Canny. Iral. Feb. IB 
Paufiiclnil.Peb.18. 

M. 6. Tyrrell & Co. (Jersey) Ltd. 

P.O. Bm 426. SL Hriler, Jersey. C 1. 

Ortac.M I - IfiaOMI ... t - 

Unico InyesL fd. Mngt. Co.. S-A. Lux. 
Lorctton & Continental Bankers Ll a. 

2, Throgrnrton Are., Londoe. 01^386111 
Unico Invest. Futd... iDU5bll 57.80] -C3 — 

l/nron-invcstinent-Gesellscftaft mbH 
Pcwtach 16767, D 6000 Fraifchn lb 

Kfc =rdj&» WPS = 

Unreota (Ol.WW 3b00|+G13[ — 

V.CJL Financial Management Ltd. 

42, Essex Siren, London, WCZ 01-3536845 

PffltAmer.OsFd. .. .IUSS528 - I . . I - 
for Van Cunrtn L Assoc, sre V.CA FranctaL 

Vanbrugh Fund Mngmt Inti. Ltd. 

28-34 Hill Sl, Sl Hriwr. Jersey. 053436201 
Vwtrugh Cwrency Fd.|1089 109J( — i 957 
S. G. Warburg ft Co. Ltd. 

30, Greshant Street. EG? 0145004555 

Energy I ntl. Mach 5 I U3SZ721 J-C-33J — 
Mert LuO& Maroh3 US5U>eB 12 7j J 632 
Mere. Mny. Mar 8.. Jl5-M^ 1540L0I» - 
Select Rk Feb 16 luSSUJi 12.701 .T77| — 

Warburg Invest Mngt Jny. Ltd. 

7 Library PBte, - Sl. Hriwr. Jsy. Cl 0534 37217 

Merc. Cim. Mar 2 ...|CM 76 15 141 J 3 70 

Mer Far Tt fAar 3 — 1(12.92 13 iS 143 

Metal II Feb. IB U0.94 llTll _ 

MT Lid Frt 25 |tJL56 11M ... 303 

Merc. Tran, Frt. 2b.lll3.31 13 Ml 3.73 

Wamliey Investment Services Ltd., 

4lh FJocr. Huttlwon How, Hong Kong 

Wardlev Trial .|HKKMM 2600) . ...-| 473 

VtttSrv MUoAs. FdluS5367a 38 2b2 
WircHev Bond Trail ..IUSM «2 9 W ... I 9 17 

warciter Japan Trust. fuSXUta IbZfl .. 1 13» 

World Wide Growth Management^ 

Ida. Boulevard Royal, Luneraoiaq 
Worttnde Gtft Frf USJU.05 l-Q Vl - 
Inv. AOr.: NL & G In* MagL, Ltd, Lanaon. 

Wren Commodity Management Ltd. 


neon nevse. Mono Kong 

.....|HXKMM 26 00).. ..I 
b Fuluss367a saa I 
’rail ..HISS? 43 9h« ... J 

Traw.il/ai3ta JAZn - - 1 


062t 250 ’J 
.4 oM 


10. Si Grave's Sl, Dou^as UM 
Wien Cnrcmod. TsL ..Ml 2 
Drtory Fund . . 7b 0_ 
Precious Metal Funo 177 0 
VanguanJ Cndy Fd . 46 4 
FittwulF.rtumFd . 1041 


NOTES 

Pncrs are in oeere unless ntherume mSuird 
Vie Ids %> ■ shown in last column 1 allow tar all esiym] 
evoeraes. a oilrrerl pnrr> include all nurest*. 
6 Today's prices c Virid baud or rflri |*ice. 
d Estmtaed q Today's epnimq — pure. 
h Dismbutim trer ul UK laire. p Periodic 
prrmum rmur-wer puns f Single premium 
ur^n.iree 1 Oili.-rnl price mcJuOev all espeits»s 
eicrpi agent -'■convnssion y Oftw-d price -iv.ludes 
all mp-nsrs ,1 houaln ihmigh nunagrrc Z PtriittiS 
dav'* re*e 9 Omnsey qroii e.Snvenlea 
* Vield la-tare J.tv-v Mi 1 E- suhdutSiOn 
?t Crly an>ui.V to r.iwiianii- t»<ju-. 


BASE LENDING RATES 


A.BJ'T. Bank 13}9fi 

Allied Irish Bank 13i% 

American Express Bk. 13]% 

Amro Bank 13 j 1 ?, 

Henry Ansbacher I3i9fi 

Arbuthnot Latham ... 14 % 
Associates Cap. Corp. 14 % 

Banco de Bilbao I3j% 

BCCI 13* 

Bank Hapoalim BM ... 13*% 
Bank Leumi (UK) pic 13}% 

Bank of Cyprus 13*% 

Bank Street Sec. Ltd. IS % 

Bank of N.S.W 13* % 

Banque' Beige WtL ... 131% 
Banque du Rhone et de 

la Taraise SjL 14 % 

Barclays Bank 13}% 

Beneficial Trust Ltd. ... 14}% 
Bremar Holdings Ltd. 14}% 
Bristol & West Invest. 15 % 
Brit. Bank o£ Mid. East 13} % 

f Brown Shipley 14 % 

Canada Penn't Trust... 14 % 
Castle Court Trust Ltd. 14 % 
Cavendish Q’tyTstUtL 15}% 

Cayzer Ltd 14 % 

Cedar. Holdings- 14. % 

I Charterhouse - Japhet.. 13}% 

Choulartons ' 14- % 

Citibank Savings .:.... 1114 % 

Clydesdale Bank 13}% 

C. E. Coates 14 % 

Consolidated Credits... 13 1 -> 

Co-operative Bank *134% 

Corinthian Secs. 13}% 

The Cypjus Popular Bk. 13}% 
Duncan Lawrie 33}% 

EagilTrust l3}% 

E.T. Trust • 131% 

Exeter Trust Ltd 14}% 

First Nat. Fin. Corp.... 16}% 
First Nat. Sees Ltd, 16 }% 
Robert Fraser 14 % 


Grindlaj's Bank J13}% 

■ Guinness IBahon'. 13}% 

■ Hambros Bank 13}% 

Heritable & Gen. Trust 13}% 

■ Hill Samuel 533}% 

C. Hbare Co Tl3}% 

Hongkong & Shanghai 13^% 
Knowsley & Co. Ltd. ... 14 % 

Lloyds Bank 135% 

Mallinhall Limited ... 13}% 
Edward Manson & Co. 141% 

• Midland Bank 13}% 

■ Samuel Montagu 335% 

■ Morgan Grenfell *4 % 
National Westminster 131% 
Norwich General Trust 135% 
P. S. Refson & Co. ... 13}% 
Rosburghe Guarantee 145 % 

E. S. Schwab 13}% 

Slavenburg's Bank ... 13} % 
Standard Chartered ...!]13}% 

Trade Dev. Bank 13}% 

Trustee Savings Bank 13i% 

TCB Ltd 13J% 

United Bank of Kuwait 13}% 
Whiteawaj’ Laidlaw ... 14 % 

Williams & Glyn's 13}% 

Wintrust Secs. Ltd. ... 13}% 
Y’orkshire Bank 13}% 

■ Mombeis of ths AcOaptmg House! 
Comminec. 

* ' 7-riay . deposits 11.00%. 1-month 

n.25%. Short term E8.000/12 
. momh 13.6%. 

f 7-day deposits Oh etima of: under 

£10,000 11.00%. £10.000 up w 

£50.000 HV». £50.000 and over 
12(.%. 2--. 

t Call deposits £1.000 and aver 
11%. 

|| 21-day deposits over £1,000 12'-. 
i Demand deposits 11%. 

1 Mortgage beta rate. 



new products. 

_ JSrewproductsarevitalforany ... 
manufacturing company^ survival. 

Butfindingnewproducts canbe 
a problem. 

Wlnchiswbyforming Frank and 
Ockrentwas such a goodidea. 

Weinventnewproductsto ordei; 
matchingthemto your existmgmaiiu- 
factudng andmarketing capaibililies. 

■ If youwantto hear aboutthe best 
way to generate newproductldeas, 
ling Gary Curshen or PeterFrankon 
(01)5807636. 

Frank & O ckrent Limited 

. Productlnnovalioii 
7BemersMews - 
London WIP3DG 











































KJM 


Financial Times Tuesday Man* 9 1982 


Companies aod Markets 


INTERNATIONAL COMPANIES and FINANCE 


Eurodollar bond debut by Spain 


BY ALAN FRIEDMAN 


THE Kingdom of Spain is 
making its debut in the Euro- 
dollar bond market with a 
$100m five-year offer through 
Credit Suisse First Boston. The 
coupon is expected to be 153 
per cent. 

Spain has sold bonds in the 
Euro D-raark sector in the past, 
but not in the Eurodollar mar- 
ket. Its five-year paper is 
designed partly to appeal to 
central banks. 

Another debut was made by 
Reynolds Metals yesterday 
with its $60m five-year offer at 
161 per cent. The company 
has not borrowed in the Euro- 
dollar market before and has 
onlv used private placements 
in the U.S. 

Reynolds does not qualify as 
a top-rated name; it is arguably 
either trlpIe-B or single-A. But 
in the current market, with 


falling coupons, there could be 
some appeal for retail coupon- 
hunters. The deal is being led 
jointly by Dean Witter. Orion 
Royal Bank and Goldman Sachs. 

The rally in the secondary 
market continued yesterday and 
prices of fixed-interest dollar 
bonds rose by as much as a 
point in moderate to active 
trading. The market was 
encouraged bv last week’s 
53bn fall in the U.S. iVT-1 money 
supply and by declining short- 
term "dollar interest rates. 

New issues .continue to be 
well received in the Eurodollar 
market and some of last week’s 
less exciting offers were yester- 
day traded at a much smaller 
discount. The new EIB 15* per 
cent paper, for example, stood 
at a price of 99} aaginst an issue 
price of par. Occidental Petro- 
leum's 163 per cent bonds 


traded at a discount of 1} per 
cent, an improvement from its 
recent 2 per cent discount 

In the Euro D-mark bond 
market the Kingdom of Sweden 
is offering DM 200m of paper in 
two tranches. There is a 
DM 75m six-year . portion 
with a 93 per cent coupon and 
a DM 125m tranche over 10 
years with the same coupon. 
The shorter maturity should be 
of greater interest to institu- 
tions while the 10-year paper 
might suit retail investor needs. 

Deutsche Bank is lead- 
managing the Sweden issue, the 
first time the borrower has 
appeared in the Euro D-mark 
sector since November 1980 
when it placed DM 150m 
privately. 

In the secondary market 
prices were up 1 to J point in 
moderate trading. The 11 per 


cent Nafinsa paper traded at 
98?, an improvement on last 
week’s 1J to 2 per cent discount. 
The Nafinsa paper is being 
bought mainly by German retail 
investors who like high coupons 
The Swiss franc foreign bond 
market had an even better day 
than the D-mark sector; prices 
increased by up to 3 point as 
major Swiss banks towered time 
deposit rates for the third time , 
in eight days. Rates were 
lowered by 4 point, a cheerful 
bit of news which combined 
with the newst 5.3 per cent con- 
sumer price figure to boost the 
market. 

• A YlObn 12-vear private 
placement is being arranged for 
TVO. the Finnish nuclear power 
company. Yamaichi Securities 
said the coupon will be 8.6 per 
cent at a price of 99.85 per cent 
to yield 8.625 per cent 


Earnings 
and sales 
advance 
at Heinz 


By Our New York Staff 


General Cinema 
and Heublein 
battle hots up 


Big disposal by Laenderbank 


BY PAUL LENDVAI IN VIENNA 


By Our Financial Staff 


A DIFFERENCE of opinion in 
the drink trade was taken a 
stage further yesterday when 
General Cinema announced that 
it intends to buy up to 3m of 
its own shares in the stock 
market or through privately- 
arranged deals. 

At the same time the board 
of the soft drinks company dis- 
closed that it had been discuss- 
ing the sale of some assets with 
unnamed parties. Mr Richard 
Smith, the president added that 
Heublein, the vodka distiller 
and owner of Kentucky Fried 
Chicken, had told him that it 
wanted to buy back the 9.7 per 
cent of its shares recently pur- 
chased by Cinema, and that 
should this be refused, it would 
“seriously consider” bidding for 
51 per cent of Cinema's equity. 

The board of Cinema said that 
in authorising the stock pur- 
chases. it had taken into account 
the likelihood that this would 
make it “extremely difficult" 
for IJeublein to obtain control 
of Cinema. 

The directors added that Mr 
Smith. Mr Stoneman (vice 
chairman, and their family 
interests, now owned about 35 
per cent of the Cinema equity. 
Talks with third parties on the i 
sale of certain assets were going ! 
on but there could be no assur- 
ance that any agreements would 
be reached. 

Last month. Heublein filed a 
suit in New York to block what 
it called an “illegal attempt” 
by Cinema to gain control. 


AUSTRIA'S third largest bank, 
the 60 per cent state-owned 
Laenderbank, has sold its 40 
per cent shareholding in the 
Banque Con tinen tale du Luxem- 
bourg as a further move to cut 
losses and to improve its balance 
sheet 

The bank's investment totalled 
some Sch 130m (88m), and it 
is understood that Laenderbank 
has not incurred a book loss on 
the deal. The shareholding was 
sold to the Paribas group of 
France and a “ group of foreign 
investors." 

Meanwhile, delicate negotia- 


tions between the Austrian 
treasury, Laenderbank and 
Austria’s various political 
parties have reached a decisive 
stage. It is understood that 
draft legislation aimed at pro- 
viding yet more government 
cash for the loss-making 
Laenderbank will be presented 
this week by Finance Minister. 
Dr Herbert Salcher. in parlia- 
ment Laenderbank seeks 
enough help to finance the 
writing-off of some Sch 3bn 
The Federal aid is expected 
to take the form of annual 
grants enabling the Laender- 


bank “ to present a decent 
balance sheet” and to pay a 
regular dividend. In all the 
failed industrial companies to 
which the bank was a major 
lender have cost Laenderbank 
Sch 4.2bn. To date Sch 1.2bn 
has been absorbed by drawing 
on hidden reserves. 

The Sch. 3bn guarantee 
facility provided through an 
Act of Parliament last year was 
an accounting device which 
allowed the bank to present a 
balance sheet for 1980. How- 
ever, the Government now has 
to provide more funds. 


Profits ahead at Libra Bank 


BY WILLIAM HALL. BANKING CORRESPONDENT 


LIBRA BANK, the London con- 
sortium bank, increased pre-tax 
profits by 21 per cent to £27.7m 
($50m) in the year to end 1981. 
After allowing for the £l0.5m 
exceptional profit in the 1980 
figures, Libra's profits are up by 
125 per cent and are the latest 
example of the surge in profit- 
ability demonstrated by a num- 
ber of Latin American 
orientated banks. 


in loan, volume and improved 
margins. 


Libra’s performance has been 
helped by the one-fifth decline 
in sterling against the dollar 
over the year. However, it also 
reflects the benefit of the 
increased capital, strong growth 


Libra's assets rose by 54 per 
cent to £ 1,245m during the year. 
Medium-term lending, charac- 
terised by loans of over one 
year to maturity, rose by 70 per 
cent to £629m. and total loans 
rose by 55 per cent to £886.4m. 

Retained earnings boosted the 
bank’s shareholders funds and 
reserves by 27 per cent to 
£51. 4m. and subordinated loans 
more than doubled to £43m. The 
annual dividend has been in- 
creased from £l.l3m to £1.63m. 

Libra International Bank SA 
(Libsa), in its second year of 


. iiw. .. vl s'/ - .::.... • ' 




-i.. s L.. . • ‘ ■ ' • •• ■ •• 




~ ! \ .. li ■. '.ki -• -v. .. ... 


- - * 




*• . . . 




u& $300,000,000 




V ■iW.i"- • 

■v .■\ 






U£ i ■ • ■ u s s-oo ooo oco/ 

w ' 1- <3dAC Overseas FirtaB«rConscta£fon MV ■ 


vy« W ai "'T _ ■' a_~~ r 8 • V Mtw 

'■L ■ ■ 7. V— 

r . OarwsfrtWxfrs Acceptance! 






Us.l /.■ 




Xa'it ;i.- 


Lockheed 


report qualified 
by auditor 


By Our Financial Staff 


operation nearly doubled its j 
profits to just over $6m. Its i 
capital was increased from 
$1.5m to SlOm last year. 

During the year Libra man- 
aged or co-managed 33 loans for 
Latin American borrowers total- 
ling about $1.3bn. which was 
roughly in line with the pre- 
vious year's performance. 

Libra Bank, which has a staff | 
of 130 and was established in . 
October 1972 by 10 of the 
world's leading banks to “ mobi- J 
lise and channel capital 
resources to Latin America," is 
among the most successful of 
the London-based consortium 
banks. 


THE ANNUAL accounts of 
Lockheed, the defence and 
aeronautics company, have 
been qualified by the outside 
auditor who refers to the un- 
certain outcome on the 
balance sheet of the discon- 
tinuance of the TriStar alr- 
liuger programme at the end 
of last year. 

Lockheed, as previously 
announced, made a provision 
of $396J>m for estimated 
future losses to discontinue 
TriStar. 

The auditor, Arthur Young, 
said it believes the provision 
is “reasonable." But that the 
ultimate loss could be greater 
or less. 

The auditor’s opinion was 
contained in the S-l state- 
ment filed by Lockheed with 
the Securities and Exchange 
Commission for a proposed 
public offering of 2 An 
common shares at a planned 
maximum price of $47J 25 a 
share. 

Arthur Young said: “The 
ultimate effect of discon- 
tinuance of the TriStar pro- 
gramme on too financial 
statements is dependent on 
future events and other 
factors, the outcome of which 
cannot be determined at this 
time." • • - • 


RCA videodisc 


system 
loses $106m 


By Our financial Staff 


RCA lost $106m in 1981 
on its Selectavision Videodisc 
system, which was introduced 
last March. 

The company incurred 
losses of $55.5m and S21.4m 
in 1980 and 1979 respectively 
on the system’s development. 

RCA had hoped for retail 
sales of 200,000 disc players — 
but ' sold only an estimated 
65.000, according to its annual 
report 

It sold 160,000 of the 
capacitance electronic disc 
players - to distributors, 
dealers and other companies 
for marketing under ■ their 
own brand names- in 1981. 

Sales of video discs were 
stronger than - expected . at 
more than 2m albums. 
Capacity was expanded to 7m 
discs per year from 2m. 


Amfac to close 
sugar plantations 
for four weeks 


By Our financial Stiff 


AMFAC is to dose four of 
Its five Hawaii sugar plan- 
tations twice in 1982 for two 
weeks, affecting about 2,500 
employees. The company- 
blames depressed prices and 
heavy losses for sugar. 

The closures are in addition 
to the previously announced 
rundown and closure of the 
fifth plantation. Puna Sugar, . 
in Hawaii. 

Amfac. posted a $31 m loss 
for sugar operations in 1981. 
Rs 1982 first quarter sugar 
loss is expected to. be an 
“ historic high." 

The company said the’, first 
two-week closures at the four 
plantations will begin <ra 
Monday. The second will be 
determined later. • 

Amfac bas also declared a 
moratorium da wage increases 
for executive and supervisory 
personnel in its sugar division 
for the year and a morator- 
ium on most capital expendi- 
tures at the plantations. 

The domestic spot price' fair 
sugar has decreased almost 
daily for toe part two weeks, 
said the company- 

Mr Robert Rostron of 
Amfac said. HawaS’s sugar 
Industry was in grave danger, 
“ttnly a concerted effort by 
the union, -toe state, -the major 
landowners, toe producers 
and the community at large 
can provide sugar with a 
reasonable future"- . 


IBM, Armco and Amax 
tap U.S. credit market 


BY DAVID LASCEU.ES W NEW YORK 


H. J. HEINZ, the U.S. pack- 
aged food company; reports 
that a strong performance by 
its domestic business — despite 
the general recession — had 
helped it register a 15 per 
cent gain in profits in the 
latest quarter. 

In the three months ended 
January 27, earnings were 
838.6m or 81 cents a share, Up 
from $33.5m or 71 cents in 
the same period last year. 
Sales were up 6 per cent to 
$876.5m. 

The quarter’s result brought 
Heinz’s earnings for the first 
nine months of its fiscal year 
to $ 129.1m or $2.74 a share, 
compared with 8112.5m or 
$2.42 in toe same period a 
year earlier. Sales were 
$2.69bn, up from $2.56bu. 

Mr Anthony O’Reilly, the 
president and chief executive, 
said that the company’s 
advance placed it in a 
“strong position to achieve 
favourable results for the cur- 
rent fiscal year." In its last 
fiscal year Heinz earned 
$167m on sales of $3.6bn. 


THE PACE of corporate bor- 
rowing in the U.S. bond markets 
quickened yesterday in toe 
wake of toe recent decline in 
interest rates. 

IBM Credit, toe finance sub- 
sidiary of toe large computer 
manufacturer, issued 8125m of 
notes with an unusual extend- 
ability feature which Salomon 
Brithers. lead underwriter, 
hopes will give it extra appeal 
in today’s volatile markets. ’A 
number of other large corpora- 
tions gave notice of their in- 
tention to sell debt 

The IBM notes have a matur- 
ity of three years, but are 
renewable three times, in. 1985, 
1988 and 1991, implying that 
the issue could be for as. much 
as 12 years. IBM Credit will 
have the option to call the notes 
on each occasion. IF it does not, 
it will adjust the yield on the 
notes in line with prevailing 
interest rates, at a minimum of 
101 per cent of comparable 
Treasury yields. 

Salomon Brotheis said the 


note should give IBM flexibility 
in funding out its short term 
debt, while topping toe three 
year market, which Is currently 
one of toe strongest The firm 
reported considerable investor 
interest in the issue, and the 
size was increased, from $100m 
. . The notes .carry a coupon of 
33$ per cent .and were tenta- 
tively priced yesterday at 99-80 
to yield 13.83 per cent This is 
about 30 basis points oyer com- 
parable Treasury securities,, an 
improvement over the spread of 
45 basis points that IBM had 
to pay on its previous issue 
last autumn. 

The notes are rated triple- A, 
-and co-lead manager is First 
Boston. 

Armco, the large. Ohio steel 
company, filed with the Securi- 
ties and Exchange Commission 
for $100m of seven-year notes 
which win be sold in early to 
mid-March. Co-managed by 
Goldman > Sachs and First 
Boston, the notes will be 
callable after five years. 


Amax, toff metal, and nflulqg 
company, announced plans to 
sell SlOOm of 10-year notes ana; 
5200m face amount of zero 
coupon notes, also with a 10-ycar 
maturity. The offering win- be- 
mad* later this month . through ; 
an underwriting group headed 
bv Lehman Brothers Kuhn Loefc. 

‘Both Armco and Amax said 
the proceeds from the ales wift 
be used to cut their dependence - 

on short-term borrowing from 
banks and the commercial paper 
xnarkeL . 

Corporate borrowers have ; 
learnt from bitter experience: 
over the last couple of years 
that rallies in the U.S, bond 
market can be short-lived, and 
that they must make the most 
of the brief “ windows " that 
open up- Although most., 
analysts expect toe current rally 
to last a bit longer, the outlook 
is mixed at best; and toe- 
majority are predictin'* that 
rates could go up again as wor- 
ries about the Federal budget 
deficit intensify. ’ 


Doubt over order backlog 
despite record at Harsco 


Fluor first 


BY OUR FINANCIAL STAFF 


quarter shows 
decline 


A GAIN of 21 per cent from 
toe previous year’s depressed 
level of profits has brought 
Harsco, toe diversified metals 
and constructed company to 
record earnings of 86.5m or -86 
cents a share for 1931. The 
board is confident that results 
will beheld at etbis level during 
the presnet year, despite an 
expected delay in the predicted 
upturn in tbe economy. Sales 
moved up from $276-3m ‘to 
8287.7m in fiscal 1981. 

Howeer, toe board commented 
that order backlog at the end 
of last year was at its lowest 
ever level, as new defence 
orders slowed down. Of total 


backlog of 8528.9m some 74 per 
cent was defenc erelated, added 
the directors. 


By Our Financial Staff 


Tbe final quarter of last year 
brought signs of a slowdown in 
the recovery .-at Harsco, which 
takes 43 per cent of its earn- 
ings from metals products, as 
castings 27 per cent from con-; 
stniction operations and 20 per 
cent from fabricated metals 
activities.. 


.Tbe final quarter brought a 
gain of only 9 pier cent in profits, 
compared with gains of around 
21 per cent earlier in the year. 
Sales too showed a slower gain 
at 8287.7m against ‘8276.2m. 


FLUOR CORPORATION, fl* 
major construction engineering •' 
group which last year acquired 
St Joe Minerals for . around" i 
82bn, reports lower per share s j 
earnings for the first quarter .of- - 
1981-82. j '- 1 

Net profits are S39Bm 
quarter ended January, 1B82/11 
compared to 835.2m a 
earlier, but at the per share:- 
level the result is sharply low^... 
at 51 cents, against 72 cents! This f- 
St Joe acquisition involved' y£’. 
cash payment of $L2bn phis.. 
30m new shares. . . . - . 

Sales improved to $1.75bn 
from S05bn, 


FT INTERNATIONAL BOND SERVICE | 


The list shows tbe 200 latest international bond issues for which an adequate secondary market 
exists. For further details of these ior -other bonds see toe complete list of' Eurobond prices winch 


will be published next on Tuesday March 23. 

.U.S. DOLLAR - Change on 

STRAIGHTS . . Issued Bid Offer day week Yield 

Anheuser-Busch 16V S& TOO -M\ 15.37 

APS Fin. Co. 17V 88- ... 60 106 105h +0* 4 -+1*r 15.17 

APS Fin: Co. IK, 89 _. 75 703% 1031. +0*, +2*. 15-37 

APS lr»t. Fio. ,16.8a,... .25 t» »* — — 16A2 

Armco P/d Fin. 15^ 86 ' 50 — 39h. fQOV O -HH. 15.31 


Closing prices on March 8: 


Armco P/S Fin. 15^ 86' 50 
Baker Int. Fin. 0.0 92.:. 225 
Bank Montreal 16 1 * 91 150 
Br. Colum Hyd. 16»» 88 100 
Br. Cofum. Mfa. 17 97 54 

Can. Net. Rail 14* 91 100 
Carolina Power 16H 89 60 

CBterpiller Fin. 16** 86 TOO 

CFMP 16\ 96 TOO 

CIBC 16* 91 : TOO 

Citicorp O/s 161. 86... 160 
CoAs.-Bathurst 17** 88 80 

Dupont O/S 14** 68 ... A 00 
Dupont O/S Cao- 0.0 90 300 

EIB 161. 91 ...... ... 100 

Gen. Elec. Credit 0.0 92 400 
Gen. Elec. Credit 0.0 98 400 
GMAC O/S Fin. 16*, 84 300 
GMAC O/S Rn. 16 88 150 
GMAC Fn 0.0 92 (Oct) 400 
Gulf Oil Pin. 0.0 92 ... 300 
Gulf States O/S 17** 88 60 

Japan Airlines 15** 88 60 

Japan Airlines T 7 * 87 ... 37 

Japan Dev. 6k. 15** 87 50 

Nat. Bk. Canada 16** 88 40 

Mat. Wait 14»« 91 100. 

New Brunswick 17 88 ‘ 60 
New Brunswick HP» 89 ' -75 
New &.Leb. Hy- 17*. 89 75 

Ohio Edison- Fin. 17*, 88 75 

OKG 15V 97 50 

Ontario 'Hyd. Iff 91 (N) 200 
Pac. Gas &.EL 15* 89 80 

J. C. Penney Gl. 0.0 94 3SO 
Quebec Hydra 17** 91 150 
Quebec. P tov. 1SV-89 — 760 
R J flynlda. O/S 0.0 92 400 
Saskatchewan 16V 88 TOO 
Ststsioretaq 15V 87 ... 50 

Sweden 14** 83 150 

Swed. Ex. Cred. 18** S3 75 
Texas Eastern - 15V .88 75 

Tfenseanade 16 89; ... -TOO 
Winnipeg 77 88 SO 

VVMC Fin. 15** 88 50- 

Wci-Id Bank 16>* 86 ... 130 
World Bank 16** 88....- 700 


103V 103V +0V +2V 15.37 
t98 88** — — 16A2 

aovfoov o +OV1SJ1 

-25V 25V — -14.22 

TO3VKUV +0*a+241S.3« 
103V 104V +0»* +1V 15.18 
TO3V 104V +0V-+OV 16.21 
97V 198 -KIV +2V 15.04 
102*, TOO — — 15JS0 
104V 10*V +OV +1V 16.04 
102V TO2V ■ 0 ^OV 18.27 
105V 105V +0V +ZV 15.55. 
104V 104V +0*, +1V 1527 
103 103*, +OV +OV 18.59- 
99V 700V +OV +1V 14.45 
35V 38V +OV +1 14.00 
106 105*, +OV +ZV 16.67 
28V 287, OV +0 4 * 1324 
25V 26V 0 +0*, 12.82 
101V 102V +0V+0V 16.33 
ICO** 100V +0V +2V 15.86 
125V 28*. — — 1328 

2SV 27V ■— — ■ 13.W 

104V T05V — OV +1 16.13 
101 TOT** +0V +1 1429. 


Chano**** 1 

OTHER STRAIGHTS Issued PW Offer day 

Can. Utilities 17 96 CS » t98V 88V +0*.+0Vl724. 

CIBC 15V 89 C5 75 195V 96V +0*, +1V 18.34 

Psncsnadien 16** 88 CS 65 f97V 9 T, 0 +0V 17-91 


-Quebec 17*, 87 CS 

. -.Queb^Orben ,18V 86 CS 
Tordom Cpn. 16V 88 CS 

‘ TraneSftS n 89 CS 

-• ' M. Bk: Drank. 9 91 EUA 

: .SOFTE 8V 89-EUA 

- 1 U. Bk. Nwy. SV 80 EUA 
Atgemcns Bk. 10V 86 Fi 
. Amfaa Group 12V 88 FI 
•r- Amro Bank 12 88 Fi ... 

'■ • Amro Bank 12 88 FI ... 


50 TTO2V103V 


•20_.tTO0._1O1 .0 0 

25 tS7V 98 - 0 +OV 


SO ' 1100 TOOV +0V +1V ««' 


Hoi nek or\ NV 10 87 R..1 100 


: Pierson 10V 86 FI 

Pfibobenk .12 86 FJ ...... 

OKB 14 86 FFr 


- Solway « -C. 14V 86- FFr 200 


37 flOOVIOI — - 7JB 


101*, 192 ■ — 14.3S 

TOOVIOIV 0 :+OV 16.81 • 
99V 99V +OV +1V 14.84 
107V 107V +0V +2V1E.0S 
702**103 . — * • ■ — 75-57 
104V 1047, - 0 +OV 16.10 
106V10BV +OV +1V15.90 
98V -99V-+0V+0V WSl 
104», 106 . +0V +2*4 14.99 
103V 104V +1V '+3V-14.78 
21 21V-+0V-+0V1150 

108 108V +0V-+2V 15.48 
99V 99- +OV +2V 15L49 
26V 26V ‘ — - — 13.92 
102V ,103V +OV +1V 15.41 ' 
99V 100 -OV +<F, 15.78 
96 96V +0V +2 1538 

urn, toz +ov +ov ib.ii 

100V 100V +0V +1V 15.73 
99V *®V -+OV +1V 1S.98 
104V 106?, +OV +1V 14.90' 
97. 97*, 4-t>5, +OV i«.tc 


Acona 14 85 E 20 

BerieflcTar 14V 90 E' 20 

BNP 13V' 91 £ - ' 15 

CECA 13V 88 C 20 

Citicorp O/S 13V 90 C .. 50 

Fin. Ex. C rad. 13V 86 E IS 
Hiram Walker *4V 86'E 25 

Privatbanfcen 14V 88 12 

Rend /Ndl NV i(*V f 74 
J. Rothschild 14V 90 £ 12 

Royal Trust co 14 86 £.. 12 

Swed. Etc. Cr. 13V 86 E 20 
Akro 9V 87- LuxFr FOH 
Ei^rerom 9V 88 LuxFr 500 
Eu raH me 10V 87 LuxFr... 500 

EIB 8V 68 LuxFr 600 

Volvo 9V 87 LuxFr -600 


88V »7V — OV .-OVIMT 
78V 80 -OV +0V12J* C 
'92 93V 0 -0VW.71 

83V ioov +ov +ov «a . J 
103V 103V o 0 Mh 
KJ3V 104 +0V +1V TO JO ] 
103V 104 +OV +1V TOO 
96V 97V 0 +OV lOTt • 

98V 98», +0V +0V toiBB : j 
703V 103V +ov +ov to» . 

93V 94V +0*4 0 16J8t:_ 

94V 95V -OV -0Vto» ■; 
93V 94V +2V +2V»W ' 
86V 87V +0V +DV.1724 .ij 
90*4 91V+1V+3V1506 ; 

93V 94V +1V +3 to84 1 
B4V ssv +ov +svtort - 
96 96 +0V+3 

96V 97V +0V +1V15J5 . 
SUV 93V +1V +1V1M1 
100V101V — 

96V 97V +0V +2V - 

95V 9«V +0V +1 .-I 

95V 98V +1V +2V«.1> 
9P* 92V -OV +2V TL». . 
92V 93V +3V +«VT»*T'. ■ 
95V 98V +0V +2V 1T»I: . 
93V 94V +1V +3V Urt 
92% 93V +1V +< Tl^J 


d Bank 16V 86 ... 130 104% TO6V +0% +1VMI.B3 

d Bank 16V 88....100 104V105V +0V +1V15;20 

Average price changes... On day +0V on week +1V . 


.F LOATW S HATE _ t 

NOTES Spread Bid Offer C.dte C.cjtn C-*W 

Bank of Montreal 5V 91 OV 99V TOO 29/4 17J» -1MT 

■ TofcW 5V 91 ... OV 100% 100V 10/6 13V . 1*1* 

5V. 93- OV 99% 100V 29/4 1X0647^6 

^ 0 5 - 99V 100% 26/4 1*M »■» 

BFCE 5*4 87 OV 100 100*, 27/7 16% 16-21 

Chrienanis Bk. 5V 91... *0V 99V 100 5/5 16 tort 

Co : Ban Euroftn 5V 91— OV 98» s 99% 14/4 18.S TO43 

Crarfit Nat. 5V 94 .:... pi,- 99*, 9<*V 9/3 6V • S28 

nmtr»k . Kn"dm. <s» f» oi^ 98V 99V 25/2 15.44 16-81 . 

Den Norake Cnw#. 5V S3 OV 97V 98% 4/8 13.58. 13JR 

^ 92 . 99% inn% 30/6 15V tog- . 

? j® ? V ii' tOV 95% 99V */6 W JM 

"|n^. Sank Japan 5V 88 0% 99V 100% g/s 13 O ■ 

99*, TOO 29/4 17.T3- T3.T» ; 

9BV 100 16/7 .ISJl 1SJ5 

99% mm, 30/4 -17 JOB. VTM - 


DEUTSCHE MARK 
STRAIGHTS 


Change on ; 

leauad BIB Offer day week Yield 


Australia 9% 81 - ..... 300 


Beiqelec*rlc 11 91 . ....„ 

ceca to si .... .. 

Coun. of Eoraps-JO 91 


C. of Europe 10V 9t TOO 


EEC 10V 33 >...; 100 

EIB 10V 91 . 200 

EIB 9*. 88 ..80 

Finland. Rep. of 10V 88 100 • 
Inter* American 10 91... 100 
Inter-American 10V 91 100 

Ireland 10V 86 100. 

Mexico 11 88 TOO 

Midland Int. Fin. SV 90 TOO 
Mt. Bk. Dnmk. 10V 91 100 

Nat. West. 9V 92 TOO 

New Zealand SV 89 ... 200 

OKB 10V 91 160 

OKB 8V 98 160-' 

Quebec Hydra 10V 91... 150 
Swed. Ex. Cred. 10V 91 100 

Venezuela 11V- 91 100 - 

World Bank 10 91 2EO 


99- 99V +0V +0% 9A8. 
101V 102V -+0V O 10.63 
101V 102 +0% +0V 9.72 
TOO*, ,100V 0 +0V 9-91 

- 101V 101V “0% +0% 9.98 
-101.. WiV' O. +0V 9.94 

102*, -HWV +OV +OV 9-93 

- 99% TOOV +OV +0% 9.78 
701 101V +0V +0\ 10.08 
101VW2V -OV +TV 
imv 101V -OV +6% . 9.98 
im*V ioov -ov +ov TO.no 
100V TOOV -OV +0V 10.90 
93V «V +0V -+»V B.51 

1D0V 100V — ov 4-0*, 10.42 
101 TOIV'+OV +1V 9.49 
101 101V +OV +OV 9 80 
TO1% W +OV +flV 9.BS 
99V 99V JO +0% -8J*4 
10TV.TO2V 0. +OV 9 m 
99V TOO . . 0 +0% 1027 
TOOV-TOOV+OV +'OV 11-37 
TO3VTO4V+3. T1V 9.38 


H x ^* f Eunrfi " 93 -■ 50V 99*, TOO 29/4 17.13' T3.T7 

SS? ^ ® S BV 100 16/7 -1SJ1. 1SJS 

Midland- int Fin. 9 91... OV 99% 30/4 .17 JW. VtM 

^ «7 »/S 1731 -17.» 

.5K- » T *24/3 17.31 170 

Nat W«t. Fin. 8**91... frp, S«V ion 15/7 15.19 TOJ3 


Nippon Credit 5*. 90 ... rn. 


Nordic Inf. Fin. 5V 91... 


Offshore ’Mining 5V 91 >*V 


Pemex B 91 - 

PKbankerr S-41 


MV TOO 15/7 15.19 TOJ3 
9PV 100V 10/3 1806 IMS 
9B% 99% 6/R 1BV 15-TO 
MV MV 2/6 13 : ■ 13-rt 
96V 97 8/4. 17 17X7. 


I a; S SS 

Rcotlnnd Int. 5V 32. OV 98*, 99 23/3 13 M 1«-11 


Sec. Pacific 5V 91 O*, 

fioclete Gens rale 5% 91 OV 
Standard Chart. 5V 31 OV 
Sumitomo Fin.' 5V 88... ov 

Tnmnrn. naa>;. v ^ n An 


S»V «4Vaa/R TS* W37 
w 99V 22/7 ' 18V •" 1537 
MV W*V IP/5 13J1 13« 
«V TOOV 9/8 . TO . toW 


ToranrpDomi^ri^r MOV IOOV 100V 11/8 IBV toJi 
Average price changes... On day +DVon.week>+6V 


B®, -86 -OV 01-^*' 
SSV 87% -0% -5-Tf 
M% 96% +2% -«.3« 


Average price changee..' On day +OV 6n week +0% 


SWISS FRANC 
STRAIGHTS 


Change on 

Ifeuetf Bid Offer day. week- Yield 


Anastt Transport 7>* 92 
Asian Dev. Bank 8 90 


t102 1Q2*i +0% +1V 7.17 
■102V 102% +0V +0% 7.59 


Australia 6V'S3 ......... TOO +103% 104 . ; +t +1V 6^9 


Balgalectric 7V 91 
Bell Canada 7V S3 ... 
Bot ds Autopistas S » 

Denmark 7% 9t 


80 . TTO 0 VT 00 V ;+(P*;+PV. 7 j 44 


t106 TO5V +1V +2V 6.S9 


50 t1O0V19OV.+OV+1V7.93 


198% 99 +1V +1V ' 7.43 


Dorns Petroleum 7V! 30 100 “1O1V101V +0% -0V .7.D2 


EIB 7V 92 


H01VTO2 +1V +3V 7.«r 


Elet. da Franco 7 92 ... 100 two-. IOOV +0% +2% .6^6 


ENa 8 92 44 tlOOV TOI +8V +1V 


Gannsr 7 91 TOO *t01 - T01V +*•* +°V «.»•- 


1/S Siam. 8V>1 


•104 «*V 0: ,+QV 


. .. <V7WVFRT1BLE Cnv. Cnv dm ’ 

; ;S,o SV 98 P S£ B mv°2?V^ ^ 

• 55* Y^'loy.lnv. 8 9S ... 4/8123.12 gp. w —0% 

oatws s«s. tS’* 5*43* Jg! 

fSSU ■«£JS'SS-S 

Harmon O/S Fin. SV 98 8/M ™ 1^- -2AZ 

Hitachi Cable RV 96 2/R? 1 S. ZZ? T?- ip 

• Hitachi Cred.’ Con 5 96 7/*i ?? 2 ^ tS 

■fissjt Sv s..i? aS 

- KaJS ; aW “ Z™ MOV 82 +1V »rt 

Jafndlra' Csmem R OR ■ 531 85% 96% +01. 8.® 

issrs.%" “ gviS«:« 

Njooon Chemi^C. 5 9V !!lO/*l ^ 

ElMTrle ^ 97.. M6 SL iS l|S 
. Onent Finance RV 97 ... 3/«2 1M7 ^2?? IS iS 

. Sanyo EIactric-5 9®. ,...to/R 1 ece im SI* ,2!* 1 7c 
Sumitomo Mat. SV JR^.tow S Sr iS? 

Mi*: c- S!S ? 5 -*a ,53 


90% K»V +0V-2JN 

79 91 +0% 4.08 

WV 88. +2 8J4 

toes m +iv »-rt 

6SV 68 0 1.» 

B5V 96% +0*. 8 M. 

62% 83% +1% 11-2? 

B4 88 — 5V‘ *■« 
« 63V +CV 13.42 

79V 91 +1 -K« 

80 82 -0% 3J1 

«v 96% +?v tort 


Japan Air Unas A 91 100 *104 104% 4;l“ +1% <L6B _ 
Nedor. Gesunle 8 91..; TOO- *108% W +QV+0V 8S9 


: katrishirnfeu 6 90 nw ii! 2/ff? M ’in 

/Mrtsubntti FI. 0 88 DM 2/8Z S 4*2 


2 m 263 


Kiooon T. and T. 6V 92 TOO tlO^zTOR +1V +3V .* Jrt: 


OKB 7V 81 ....... TOO tioo TOO*, +ir,4*,f 7J3 

Oslo, City of 8 91 TOO -TO4% TO5V+0V+tY 7.2S 


Ost. Doneukreft 7 82 TOO +100 100% +0% +2V.. 8.96 


Sslnt-Etisnne 8V 91 ... 

srssssss!! s f. «ass?ass s 


2D tTOfi TOBV +0% +0V 7.70- 
75 *96% 97. +0%:+0% 7.74 

60 t105 TO5V+CV +2V 7^2‘. 


;• * ^information mraHable— uravious da V's oric*. 

_ . J ° nl V one mefket maker *upplied a nriee ' 
V l0 [ d *p redemption of** 
^ J “ . fn millions of currency 


who™’ ft ,a r 8 % bliK 


Change o n 


,w r ZUJZL u - 5 - C.epnwTh* cu„nm coupon* 

Average price change*... On day +0% on waah.+tV - *- m™**! yMd. 

V • \ * . - ■ : ' : ' :■ unless oifier- 

IBHTS.i • issued Bid Offer dav wirak Yield ; , NHmb! el .mount of bond per share' Kmnwaed ltf 

■ .8k-- .rtf. * , IS 'TOO'. 10V -*0V +1 . 8:17 -: -;-V - eOriww- « a h«a. n convaralun «TO™fix^d 

IV 88 ,.., 30 S1V 9ZV +6% +DV B.2S ‘ .^^"-^rcenteue pram I um ol the cuimniMfaetiWB ofa* 

J -12 - 98V 9BV -0V O 7^8 £ ?■ :<* acqulrinq. ph» m el. rte bend 

,b. of 8V 87 . IS . 100 101 . +0% +0% .834 • - ' - odem of the' share*;. 


YEN STRAIGHTS- Issued 

Asian Day. ,8k-. . 8*f. 91, 16 
A'Mirell* 6V '88 ^ 2D 
EIB 7V 88 ;12 

Finland. Rep,, of 8V 87. 15 
Int. -Amur. Dav. 6V Of TO 
New Zealand BV ST IS ; 


TOBVlOa^^mr+pV .8^0.. ^ ... ..... -. . 

Zeeland Wrt 75 _ IOOV IOIV +OV +0% > 8iT6 .^artCialTimas iw.;. 1S82. RenrodnCTinn in whole 
AtraragepricodranBee... day -0** op we«t +0% lit any; hum.. o« -P«raJt»^^5St^ jSSi 

-^.PATASTSEAM-'InWnutiiUial,, 











31 



ISaa^Lal^ Times Tuesday Mai^fct 9. .1982. 


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Why Morgan leads . 
all U. S. banks in international 

correspondent banking 



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The Morgan Barikis aleader in serving financial 
Witiitinns all over the wodd Infect, Morgan 
[ranks first among all U.S. banks in the important 
^category of demand deposits due to foreign banks, 

r: 'W3tht more than $13 billion. 

K Fast service, fresh ideas 


uimvery at oasic rau«>puuu»«. — ; : — . 

? jSnandng, dealing, safekeepmg, foreign exchange. 
‘ Our dients also like the way we keep coxnmg . 
.-j. ™^ na i/3pn?s and services. That’s the 


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today’s ccanplex 



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Two of the Morgan officers who serve financial institutions around the world are shown in Vienna. From left, Frederick Teizch. 
S, bSH aKJopean Correspondent Bankmg Department, and Wilhelm Amtage, in charge ol Germany and Austria. 


international markets. Ways we’ve helped recently 
indude: 

. □ Creating a cash concentration account far a 
Belgian b ank ’s U.S.-dollar float 

□ Introducing a French bank to the Asian- 
ddlar market for floating-rate notes and CDs. 

□ Hdpng an Italian bank acquire a U.S. bank. 

□ Structuring parallel loan financings in pese- 
tas and dollars with Spanish banks. 

. □ Confirming and syndicating multimillion- 
dollar letters of credit covering international trade. 

□ Becoming major U.S. issuing agent for com- 
mercial paper of numerous banks in Europe. 

A special group of officers, in our New York 

The Morgan Bank 


headquarters and our overseas offices, coordinate 
Morgan correspondent services. All have served 
in our international- offices and know banking prac- 
tices.in countries around the world. 

Because they’re in dose touch with Morgan 
specialists in every .field, they can put our whole 
bank’s skills and resources to. work for your bank- 
in the fastest, most effective way. 

Ask for details 

For more information about how we serve financial 
institutions, and how we might serve you, call or 
write Gordon C. Wilson, Wee President, Morgan 
. Guaranty Trust Company, 1 Angd Court, London 
ec2r 7ae. Telephone (01) 600-2300. 


MerrttfFDC inw*oraMwflif«iW i*fly nths USA. 











'•'yVv*'. 









EXTRACTS FROM AUDITED CONSOLIDATED ACCOUNTS 


Year ended 31st December 


CAPITAL AND RESERVES 
SUBORDINATED LOANS 

CASH AT BANKS, MONEY AT 
CALL AND SHORT NOTICE, CD'S 
LOANS 

TOTAL ASSETS 
PRE-TAX PROFITS 

♦Excludes an exceptional profit of £10,467,706. 


1977 

1978 

1979 

1980 

1981 

£ 

12,865,529 

2,817,860 

£ 

15,554,217 
. 7,038,561 

£ 

19,279,029 

9,700,367 

£ 

40,408,094 

20.847^15 

£ 

51,375,398 

43,030,039 

58,006,316 

229,540,465 

806,872,227 

85,364,704 
337,813^36 
449,369,306 . 

98,001,746 

386,290,820 

519,132,286 

118,653,107 

571,010,726 

806,632,048 

202,291^65 

888^78^28 

1^45*463,781 

5,104^36 

7,737,688 

10,243,812 

12^96,350* 

27,677^04 


The Chase Manhattan Banfc, N.A. 
Swiss Bant; Corporajion 
RancomerS-A. I 


Banco ltau SA. 


Shareholders 

The Royal Bank of Canada 
VVesMeirtscfie LandesbankGirozantrale 
Credllo ttallano S-p-A. 


National Westminster Bank Limited 
The Mitsubishi Bank Limited 
Banco Espirilo Santo e Comercial de Lisboa 


Bastion House, 140 London Wall, London EC2Y 5DN 
London, Bogota, Buenos Aires, Mexico City, New York, Panama, Santiago, Sao Paulo 



NEW ISSUE These debentures hoping been sold, this advertisement appears as a matter of record only. 

CAN. $30,000,000 

Conseil scolaire de Pile de Montreal 

17i% Debentures due 1987 


Conseil scolaire 
de Pile de Montreal 


Merrill Lynch International & Co. 

Algeraene Bank Nederland N.V. Amro International Limited 

Banca del Gottardo Bank Brussel Lambert N.V. 

Banque Internationale a Luxembourg SLA* Banque Worms 

Credit Lyonnais Sodete Generate 

Sodete Generate de Banque S.A. Wood Gundy Limited 

Levesque, Beaubien Inc. 

February 1982 


Tfrfe o d re rtfeem ant qppeore os a matter of record only. ^ 


U,S. $225,000,000 

^ crocker nnnonRLBnnK 

Zero Coupon Certificates of Deposit 
Due February 24, 1992 



Financial Tiiaes Tuesday March 9 19S2 

INTL. COMPANIES & FINANCE 


Heavy financial costs bit ^pTup 


BY WILLIAM OULLFORCS W STOQCHOtM 


BILLERUD. the Swedish pulp, 
paper and packaging: group, 
yesterday reported a sharp 
■drop in 19S1 earnings to 
SKr 75m ($13m) from SKr 
192m in 19S0. Sales rose by 9.6 
per cent to SKr 3.67bn. 

The board proposes to pay 
an unchanged SKr 7 a share 
dividend, although the net 
adjusted return is given as 
SKr 3.50 a share against SKr 
17.40 in the previous year. The 
company raised its dividend in 
1980 to SKr 7 from SKr 4 in 
1979, having passed the divi- 
dend in 1978. 

The setback at Billerud’s is 
attributed, to the effect of the 
general recession on the 
Swedish pulp, paper and timber 
business. A high level of capital 


spending. SKr 540m last year, 
has also drawn heavy interest 
charges which pushed up set 
financial debits from SKr 141m 
to SKr 211m. 

It can be deduced from the 
figures that the forest product 
operations in Sweden ran at -a. 
loss last year. By - contrast 
Celbi, the Portuguese sub- 
sidiary, more than doubled 
operating . profit to SKr.. 15.5m 
on. a turnover of only SKr 335m 
and contributed more than half 
the group operating profit of 
SKr 2S6m. 

This . operating profit in- 
cluded SKr 112m in stock 
appreciation. In the Swedish 
timber, pulp and paper 'bust-' 
ness operating income tumbled 


from SKr 160m to SKr 2 tin on 
sales of SKr 226bn. Packaging 
improved its - operating profit 
slightly to SKr 63m with sales 
growing by 28 per cent to 
SKr 703m. ___ , 

JB&erud . shows a net extra- 
ordinary: income of SKr 150m, 
of. which SKr 194m comas' from 
the sale of electric power assets 
to . a distribution company 
which - it owns jointly With 
Uddehotar, ~ the steel concern . 

The company is more hop®* 
ful ■ about the trading outlook, 
in 1982. . Rationalisation and 
. the return from investments 
which' have recently been com- 
pleted will . offset cost 
increases. At the same time 
the genera] price level for pro- 
ducts is expected to be higher. 


Ashok Leyland has record year 


BY KENNETH GOODING, MOTOR INDUSTRY CORRESPONDENT 


ASHOK LEYLAND, the Indian 
truck and bus producer in 
which BL has a 50.6 per cent 
shareholding, bad a record 
year in 1981 with after-tax pro- 
fits reaching Rs 150m f$15m) 
compared with Rs 126.5m in 
1980. 

Sales revenue jumped from 
Rs 20.43bn to Rs 26.01bn. The 
trading profits were Rs 2.48bn 
last year, against Rs l.Tbn in 
1980. 

The dividend was held at 20 
per cent for the year. 

Ashok said it had to over- 


Incentive 

profits 

decline 

By William DuUforce in 
Stockholm 

INCENTIVE. the Swedish 
investment company which con- 
trols about 20 small engineer- 
ing and trading companies in 
process of development, reports 
a decline in pre-tax profit after 
extraordinary items from 
SKr 148m to SKr l?0m ($21m) 
last year. 

The board recommends mi 
unchanged dividend of SKr 8 a 
share on the ordinary stock. 
Under the present market out- 
look it estimates that the 
group’s earnings this year will 
be “ not inconsiderably " better 
than last year’s. 

Group sales climbed in 1981 
by over 22 per cent to SKr 4Jbn. 
Incentive, which belongs to the 
Wallenberg banking and indus- 
trial group, was founded to 
provide finance and manage- 
*ment for companies- with 
new, advanced products and 
Ideas. 

Recently incentive has ex- 
expanded in the U.S. where it 
.has 12 subsidiaries. These 
turned in a combined profit of 
SKr 25m on sales of SKr 455m 
last year. 

In Sweden the best results 
last year were recorded by 
Carl Munters, which, makes 
heat exchangers and dehumidi- 
fied and has. large exports, and 
Skega. which produces, rubber 
components and seals. 


come the problems associated 
with material supply and - a 
labour dispute at one of its 
new manufacturing plants to 
achieve its record last yean ; 

Vehicle sales and production 
increased by .2,000' or- 15 per 
cent to 15,031.- - - - 

Ashok, which employs more 
than 10,000 people, brought its 
Hosur plant into production last 
year and began building -two 
other plants — ■ at - . Bbandara, 
near Bombay, and Alwar near 
Delhi 1 

The plants will boost Ashok’s 


capacity to. 40, 000 tracks and 
buses a year by the ‘late 1980s. 
19SQS. 

BL’s other Indian subsidiary. 
Encore Foundries, in which it 
has a 69 J. per cent stake, partly 
hdld via Ashok, afso improved 
its financial, results last year. 

Sales rose from Rs 16514m 
to Rs 219m, the profit before 
tax to Rs 33.5m from Rs 24.5m 
while the net profit reached 
Rs 23.4m, up from Rs 146m. 

Ennore, which like Ashok is 
based at Madras,- increased out- 
put last year by more than . 16 
per cent -To 19,510 tones. 


By Wf Gfester in <Kto 
NORWEGIAN industrial capi- 
ta spending abroad rose, by 55 
per cent last year to, over.. 
NKr IbQ (9167m). according to 
the Bank of Norway- The- figure, 

which does not cover invest- 
ment In foreign strip ping -ve il-/ 
tuns* is based on carnaKs 
licences granted by the bank. 

.The' NKr 385m rise over 1980 
x*?ftects"a number of important 
individual deals, like the pur- 
chase by EJkem from Umoa . 
Carbide of several smelting 
plants. Of NKr 566m invested 
ia the U.S. last year, the Elkem/ 
Union Carbide deal accounted 
for NKr 360m. _ ■ 

After the U.S., Sweden w&3 
the country that attracted most 
Norwegian investment -in 1981. 
with Norsk Hydro’s aanrisition 
of a 75 per cent stake m Supra, 
the Swedish fertiliser company- 
boosting the total considerably. 

Foreign investments in Nor- 
way last year reached NKr 
356m— NKr 54m up on . a year 

earlier. 

Statistics are also aval! a ole 
for non-residents’ holdings of 

shares in Norway. These show 
that at end 1980 foreigners had 
shares in 1.739 Norwegian com- 
panies < including shipping 
companies) with a total par 
value of NKr 4bn. 

• Jonas Oglaend, a Norw egian 
manufacturing company, has 
sold the international marketing 
rights for its Move-O-Matic 
international robot • to Fairer 
Automation of the UK for about 
NKr 8m (61.34m). 


Increased earnings from 
National Bank of Kuwait 

BY JAME5 DORSEY W KUWAIT . 

NATIONAL BANK of Kuwait NBK led 18 syndicated -loans 
the oldest and largest coramer- last year with a total value of 
cial bank in the country, has $1.4bn. which included six 
increased its net profits for Kuwaiti dinar deals with a 
1981 by 28 per cent , to KD 16m combined value of KD 47m 
($58m>. Bank of Kuwait and the 

Its balance-sheet total rose Middle Fast has reported a 31 
by 42, per cent to KD' L95on per cent gain in net profits to 
($7bnV from KD 1.37bn, "rein- :816m. and a 35 per cent growth 
forcing its .position in tile top. f in assets to .$2,6bn.' , 

five, erf Arab .banks. ' Kuwait banks were able to 

•The banw, which last Novem- increase ' their _ activities and 
ber took majority control of diversify -.their operations in 
Banque Erahco-Arabe dTnvea* European currency markets and 
tissements Internationaux joint international lending 
(Frab Bank), the Paris-based because ofcont&nued assistance 
consortium bank, is proposing . by the Ministry of Finance, 
to pay an 18 per cent dividend. - Kuwait Bank: - said. 


Malaysian textile results . 
reflect weak trading ; - 

BY WONG -SULONG IN KUALA UJMFUR ‘ . ;- •! : 

TWO MALAYSIAN textile taining its final d&ilend at' 10 
companies report setbacks in. per cent. _ . . . L ; 

earnings, reflecting the difficult Folex directors & the future 

times which -the once buoyant • 0 f me company, which now has 
industry is now experiencing. = an accumulated loss, ,of over 
.The long _ delisted Folex 34m ringgit, lies in .the major 
suffe ^T d ^, l^ capitol reconstructidn scheme 
of. 425m ringgit ($I.Sm) forr' ^oproyed by shareholders last 
the year ended August 198L. .yeap. . 



South Pacific textiles saw net 
profit fall by more than 45 per 


However the 


cent to 2.7m (812m) ringgit for withheld, ■ apparen 


e is being 
’ • because 


the year ended September. 


the authorities are' not prepared 


- However, sales Were 18 per to. allow a relisting, of Folex 
cent higher at 40m ringgit, and ■ shares since the company is still 
South Pacific is at least main- heavily in' the red. . 


net profits 

By James Buxton In Roma 
FIDIS, a financial holding com- v 
pany controlled by Fiat with - 
stakes in Italian finance and 
industry, ' is expected to .... 
announce quadrupled net profits , 
of L20bn ($15.8m) for 1991 ; 
and gross profits of I*3 2frn . 

The increased profitability has ; 
come in part from a reorganis- .. 
ation of Fidis in the past two 
years. This included a rise in , 
capital from L15bh to L125ba ; 
anrl the t ransf er tO Fidis of 
certain, important assets, includ- 
ing a 25 per cent stake In 
Weber, one of Fiat’s major 
components suppliers. 

Bonds issued by Fidis are now 
quoted on the Milan Stock ' 
Exchange and will be convert- 
ible for one month each year 
starting this June. By 1988 Flat’s 
stake in Fidis. which is currently 
100 per cent, should drop to - 
about 40 per cent 

The. portfdlio of F5dis is 
valued at about L160bn of - 
which some L60bn is in financial 
holding companies. LTObn in 
industry, and some LSObn in 
property. It is the vehicle for 
Fiat’s stakes in such companies ' 
as Pirelli and Olivetti. ... 

Last year Fidis took -an 
important stake in Montedison, - 
the troubled chemical company, 
through a consortium of private . ' 
companies called Gemina. It also, 
subscribed to the large increase 
in Montedison’s capital . 


Deem WBierBeyndds Oversects Lid^ 

Samuel Mwtogu & Co. limited 

Algemene Bank NederiandN.V* 

BattkBrw^LambertN.V, 

Baaqae de Paciset das Pays-Bcs 

DresdnerBankAMmgeseEschoft 

Sodete Gendrale de Banque SA* 

Union Bank cfS[^erlmd(Seamiies) limited 

SteA&2fl82 



# THE CHICAGO BOARD 
OPTIONS EXCHANGE has pro- 
moted- five exchange officials, to 
its board of directors. 

Mr Joseph Duh&mel, head of 
the 1 exchange’s computer systems 
operations and: formerly a senior 
vice-president, was.- named an 
executive vice-president ‘ 

Mr John Gill, formerly assistant 
vice-president market regulation, 
was named a vice-president : Mr 
Gill’s responsibilities Willremato 
to the regulatory area. -. • 

Mr Rocco Freda was appointed 
an assistant vice-ptesdentm the. 


ext-iiauge & systems aivisiuu. no 

was director, systems liaison, 
based to the New York office. • 

Mr Stanley Sehretter, director, 
trade processing operations, was 
named an assistant vice-president 
in the systems division.' 

Mr Thomas Thrall .; veas 
appointed an assistant vice-presi- 
dent in the floor operations divi- 
sion. He was director, . manage-' 
ment information systems.. 

• GULF RESOURCES -AND 
CHEMICAL CORPORATION, 
Houston. Texas, has appointed 
Hr John H. Loilar as executive 
vice-president— operations. ' Be 
has served as president of Gulfs • 
subsidiary Pend Oreille Oil and 
Gas Company since 1977 and has 
alto served in the additional post 
of president of BS&B Engineer- 
ing Company, also a subsidiary 
of Gulf, since February 198L 
Two associated- appointments 
were anoouticed at Fend- Oreille 
Oil and Gas Company, •■-•Mr 
Wilbur L. Stevenson has been' 
appointed president. He has 

served as rice-presidenV explore- 1 
tion of Pend Orealle since 1977; 
Mr Glenn W. Patterson . was.-, 
appointed executive vjee-prest 
dent,"- drilling -'Jttd productiom. 
He joined Pen Oreille in 1976. 
Mr Carl W. Wilson, Jr has -been, 
appointed to * tocceed- Mr, Loilar 
as president of BS&B Engineer- 
ing Company, which specialises' 
in. oil arid gas. process, engineer; 
ing services- . Mi Wilson joined . 
BS&B in 1981 as president of the 


Prior to that he served as vice- 
president, division manager -of 
Wilson Industries,' Inc. 

0 Mr William T; H erndo n: ha s 
joined SECUItiTY .PACIFIC 
NATIONAL BANK- as senior, 
vice-president for operation; in . 

the international 5 banking group.. 
He was fonneriy ' with Citibank 


NA^ most recently as vice- 
president in the Northern Euro- 
pean region based- in London. 

.0 Mr Osvaldo Agatiello, repre- 
sentative of BANCO DE LA 
NACION ARGENTINA in Tokyo, 
has been appointed representa- 
tive of the bank in Frankfurt in 
succession to Mr G~ Besse, who 
is returning to Buenos Aires to 
the head office international 
division*.. ... 

J0 .‘ Jto . Melbourne, Florida, 
HARRIS SEMTCONDXJCTOR has 
split its digital products division,' 
isolating its CMOS .. and bipolar 
DlOduet erouns. into senararp 


profit, centres. Dr Robert M. 
BrilL "Previously /vice-president 
of retoarch and development 
engineering; has been named 
general manager of the newly-" 
formed ’CMOS digital products 
division. Mr Stanley Rosenberg' 
has been -named vice-president — 
general manager of the new' 
bipolar digital products division. 
Dr Joseph E. Rowe succeeds Mr 
Kosenburg . as ■ vice-president-— 
-general - manager L of the eemi- 

conflnetor programs division. Dr 
Rowe was previously head of the - 
Harris controls division.' -. •- ‘ 

0 Mr Cha rles. V. -Larson has 
joined BANKERS TRUST" QQ. 
as- vice-president in toe mergers 
and; acquisitions -group of . the 
■ corporate finance services 
department. •. He ' was with .the 
investment banking ' unit ' of 
. Blyth Eastman - Paine Webber 

Inc. ; . ' . 

: 0 AYEROK PETROTJETOM, the 
.Canadian-based oil, gas and gold 
producing . company, has 
appointed Mr Stephen. Wayne 
Singer of Calgary, Alberto to its' 
board...' ! Mr. Singer is also; ja 
director of Pawnee .(SI. Corpora-: 
tion of -Vancouver , BC; president 
: of . (hag^ma ' Investnieuts .of Cat . 
gars’, Alberta; and a director p£. 
United Mahagetoeof trfrCalgiry- . 
0 Mr Craig W. Rdthwen has 
been' appointed mauler :bf r the 
London- Cit y to andb of CANA- 
DIAN IMPERIAL. BANK' rOP 
COMMCStCE \^to ,respon®bility 

.fnr thp TTTT and -TmIotmT ' W. 


.Rothweil - replaces! Mr' Ronald 
S. T-, Robbins .who has returned 
to: Canada to take toe appotot- 
■menit-- of . vite-presjcteifl:^ and 
.;fegronai. -- general -. -mankger, 
-..MaStoteL.- : '••:•! • 

0. & George L.,Schqc^pert has 
been;’. ;appqmted v 8 :7§e^br vkiew 
proszdbnt ■<& ^ r * r ™ Tr * virn ‘ Tm 


ILLINOIS NATIONAL BANK 
and; TRUST COMPANY 1 OF 
QHICAGO. Mr Schueppert. is 
based in Paris and is. a division 
■head" in multinational banking 
services. . - 

0 Mr Richard Strauss, President ■ 
of Bats too, inc., has" been 
appointed a director of WHAT- 
MAN REEVE ANGEL. He is 
chief executive of the Balstwj 
division which manufactures and 
> markets high efficiency gas and 
liquid filtration. 

• .Mr James P. Heffeman has 
been 


GENERAL INSTRUMENT COR- 
PpRATION (GRL-NYSE). He 
•will initially be responsible for 
the corporate staff functions of 
. plant engineering, fleet adminis- 
tration and quality control. 

0 Mr Gerald R. Ford, former 
President of the United States, 
has been elected to the board 
Of AMERICAN EXPRESS COM- 
PANY. Mr Ford is also a 
member of the board of direc- 
tors of Shearson/American 
Express Inc., which merged with 
American Express in June 19SL 
0 BANQUE ARABE ET INTER- 
NATIONALE . d'lNVESTTSSE- 
MENT, Paris, has appointed Mr 

• .Daniel Boudvillaln as director of 
the credit department:, and Mr 
■Bertrand Delatire as bead of data 
processing and organisation. Mr 
Boud villain . comes from the 

-^Sstnque . National® de. Paris, and 
Mr Delatire was previously man- 
ager in tbe consulting division of 
Arthur Andersen and Cie, Paris. 

' 0 Mr Michael Glmou-White has 
b een appointed ’ a director of 
WEEKS PETROLEUM to fill tbe 
tmexpired ’cerm of the late Sir 
Oscar Meyer. Mr-Gleeson-White 

• ls ;a director of Weeks Australia 
, .a^ was a .director .of J. Henry 
Schroe der .Wagg and Ca and 
;Cha±rmanr_of Schroeder Darting 
and- Company Holding. He 

. resides in Sydney; . Australia. 

0 Mr Frank J. Nelson wfii head 
a new-, expioration office in 


.IMULUISU, UBW, -MHT 

CHILEAN EXPLORATION COM- 

• ttoit of Freeport- 
McMoR^i Iqc. - He has been 
appointed ' execuitive vicepresl- 
dent ffitscL-geoeral manner- of toe 

new company, ' '■ - - 

.# NATCHIAS.GQVSan Francisco, 

• ^ba s'apptto t^d.Mr.J. Herbert Gaul 
:: ascorepaosrtarea^xrer. 





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Flnaneiai Times Tuesday March 9 1982 

Sffe INTL. COMPANIES & FINANCE 


JAPAN TO DISCONTINUE INTEREST SUBSIDIES 



ipowners forecast record profits 



BY TOKO SHWATA IN TOKYO 


i i'i* ' *• 


THE JAPANESE Government 
is 10 discontinue from April l 
the interest rare subsidy for 
domestic shipping lines which 
order locally made ships. 

The decision -was influenced 
by the shipping lines’ forecasts 
of continued strong earnings 
performances and large* order 
books at the shipyards. 

For example, Nippon Yusen, 
the world's largest ship line in 
terms of numbers of hulls 
owned, is expecting a 1 60 per 
cent increase in operating 
profits for the year . ended 
March 31 to a record Y30bn 
(5130m). _ 

For the six months ended 
September 30 Nippon Yusen 
reported -operating profits of 
Y17.75bn, up 81 per cent from 
a year earlier. 

The company’s earnings 
growth has beld up reasonably 
well in the second- half because 
it signed- freight contracts 


before the sharp downturn in 
the market last summer. It 
also benefited on dollar de- 
nominated freight charges from 
the yen’s depreciation. 

In common with some other 
shipping companies, Nippon 
Yusen will divert some profits 
to reserves to keep below the 
20 per cent return on capital 
threshold above which it must 
repay the subsidies. 

It hopes to keep net profits 
to about Y8bn, against Y7.38bn 
in the first half and Y6.75bn in 
the last fiscal year, by retain- 
ing more than YlObn. 

AH six of the major com- 
panies took such action with 
their interim results, sometimes 
with marked effect Without 

the reserves, half-year operat- 
ing results of Mitsui OSK, for 
example, would have been 
double the Y10.48bn reported. 
The other four lines in the 
group are Kawasaki Risen, 


Japan Line. Yamashiu-Shinni- 
hon, and Showa Line. 

The interest subsidy operated 
from 1953-74 to help build up 
the Japanese flag merchant fleet 
by compensating shipowners for 
the high cost of employing 
Japanese crews. 

The programme was resumed 
in 1979 as a three-year 
emergency measure to help 
restore the- competitiveness of 
Japanese lines and to stimulate 
orders for domestic yards. 

Under the present programme 
the government covers 3.5 per 
cent per year of the interest 
charges on liquid natural gas 
(LNG) carriers and 3 per cent 
on cargo liners. The subsidies 
are funded by the Japan 
Development Bank. 

For the coming fiscal year the 
JDB is budgeting Y134J>bn but 
the money is available only for 
some specific categories of ships 
such as LNG carriers. 


The ship ordering plans of 
Japanese lines for fiscal 1952 
are not yet finalised but the 
orders are likely to shrink con- 
siderably from a year ago 
because of the termination of 
the interest subsidies. 

In addition, the recent slow- 
down in exports is believed to 
have dampened demand for 
cargo liners and ear carriers 
while the slow recovery of 
domestic economic activity is 
holding down' demand for new 
iron ore and coal carriers. 

There is some need to replace 
obsolete container ships but these 
are highly unlikely to be 
covered by JDB loans. 

The ending of the subsidies 
might open up .shipbuilding 
finance fur foreign banks. A 
number of them, including 
Grindlays, Chemical Bank, and 
Citibank have already become 
active in the field. 


Guthrie Sri Lanka plan in doubt 


BY WONG SULONG M KUALA LUMPUR 


A PLAN, by Guthrie, the UJ C. 
incorporated but now Malaysian 
owned plantation giant, to 
develop a 24,000 acre oil palm 
estate in Sri Lanka is cow in 
doubt following - opposition 
from influential quarters on the 
island. 

Under the plan, Guthrie has 
proposed investing US$50m 
over five years, to .develop the 
land which is in the Mahaveli 
River irrigation scheme in the 
North central province of Sri 
Lanka. 

Guthriei through’ its Sri 
Lankan subsidiary, would own 
12,000 acres under the plan 
while die other 12.000 acres 
would be cultivated by small- 
holders under Guthrie's direct 
• supervision. 

The irrigation scheme has 
been designated a: free trade 
znne enterprise, giving it such 
incentives as a seven-year tax 
holiday followed by low income 


taxes for the next 15 years. 

The deal was negotiated 
before Guthrie was taken over 
by Permodalan Nasional, the 
Malaysian government invest- 
ment agency, last September, 
although the letter of intent 
with the Mahaveli River 
Development Authority was 
signed in October. 

Since then. Sri Lankan oppo- 
sition parties and unions have 
criticised the deal and the 
World Bank, which is financing 
part of the US$2bn Mahaveli 
scheme has expressed reserva- 
tions that such a large area 
should be given to a private 
foreign corporation. 

Sri Lankan ministers have 
recently been quoted as saying 
the government was “re- 
thinking'’ the deal. The oppo- 
sition wants the land to be 
given to local rice farmers. 

The Sri Lankan government 
is considering setting aside 


another area outside the Mafia- 
veli River basin for Guthrie, 
although it is difficult to find 
a suitable piece of similar size 
elsewhere. 

Guthrie's management in 
Kuala Lumpur said final nego- 
tiations were still going on with 
the Sri Lankan authorities but 
would not comment further. 

• Meanwhile a Malaysian team, 
Jed by Datuk Paul Leong, the 
primary industries minister, is 
in New Delhi in efforts to 
consolidate the Indian market 
which has become crucial for 
Malaysian palm oil. 

India bas emerged as the 
biggest purchaser of Malaysian 
palm oil. taking 400.000 tonnes 
last year or 17 per cent of 
Malaysian output Malaysia has 
to find outlets for the increasing 
volumes of palm oil -from its 
new plantations at a time of 
world recession and increasing 
competition. 


Further 
growth for 

Albaab 

By Mary firings in Bahrain 

NET PROFITS of A1 Bahrain 
Arab African Bank (Albaab) 
which is 60 per cent owned by 
Arab- African., Bank dL Cairo, 
rose by 62 per cent in. 1981 to 
IL&SUJMm. ' bank was 
•articulariy active in short- 
term international corporate 
finance and syndications, with 
two-thirds of ail lending activi- 
ties directed to Gulf and other 
Middle East countries. 

The loan portfolio increased 
by 90 per cent in the year to 
$668m with. Albaab participat- 
ing in 46 syndications totalling 
more than $4hn including 21 as 
lead - or co-lead manager. Credit 
facilities arranged privately for 
major corporate borrowers 
amounted to another $350m. 

The balance sheet total stood 
at S1.24bn ‘ (including $I.08m in 
contingent liabilities) which 
amounted to just over one-third 
of the consolidated balance 
sheet of the .Arab African Bank. 


Goodwood Park Hotel 
lifts earnings and payout 


BY GEORGIE LEE IN SINGAPORE 


GOODWOOD PARK HOTEL, 
Singapore's major hotel group, 
has reported a 37.7 ‘ per cent 
improvement in group pre-tax 
profits to S$31.7m for the year 
to September 1981. Profits 
after • lax were 46 per cent 
higher at S$l9.4ftm. 

After minority interests of 
S$3.6m and an extraordinary 
gain of S$2J5m attributable 
profits amounted to S$18.35m, 
up by 53 per cent- 

The parent company, which 
owns and operates the group’s 
.flagship hotels of the same 
name, reported a 34.6 per cent 
rise in pre-tax profits to 
S$17.4m and post-tax profits 
up by 36 per cent to S$10.38m. 

The group has proposed a 
final gross dividend of 15 per 
cent, making a totai of 25 per 
cent for the year, against 15 
per cent previously. 

Th group’s subsidiary, Hotel 
Malaysia however, did not 



Marchl982 issue includes: 

sfc Has monetarism failed? 

$ Inflation tax 

* Internationalisation of the Yen 

* US Bank deregulation 
International corporate finance 
ItoyalBankdedsion-tliewider 
issues 

* Retail banldngsurvey 
Banking in Canada 

TEB4WER 

The international forumfor 
feeing bankers evenywhere. 

THE financial times b usiness po busbiwv I nmrop_ 

ISESSSSSS SEKEKSi**™ 

SSaflasssstsesss!*? 

SSSSSsscfflessHU 

be cancelled- 


Suh ngriptiouRates 


bmckcasdbiskxaeb 
M rftfimflUra - — 


£34.00 UK 


£56!00 RestofWorl 

US$90 USA Airspeeded 


JabUU* 


A^rtma 


KtoniofB M i n ** 


Drt* 


match the performance of the 
parent Pre-tax profits were 
little changed at $4. 66m . and 
post-tax profits were marginally 
lower at $2. 67m. .None, the less 
the. dividend total is being held 
at 25 per cent with a proposed 
final dividend of 10 per cent. 

• MING COURT HOTEL, which 
late last year became a sub- 
sidiary- of the Malayan United 
Industries (MUD group, has 
also reported a sharp improve- 
ment in earnings. Pre-tax profits 
for the year to September 1981 
rose by 37 per cent to S$S.8m 
and post-tax profits were 51.G 
per cent higher at S$5.74m. 

Ming Court bas proposed a 
final gross dividend of 10 per 
cent, making an unchanged 
total of 25 per cent for the year. 

MUTs stake in Ming Court 
Hotel, amounting to 52 per cent 
of its issued capital,' was 
acquired largely from the 
Goodwood Group. 

Acrow to top 
forecast 

By Jim Jones in Johannesburg 

ACROW ENGINEERS, 1 the 
South African znanfacturer of 
steel storage equipment, cranes 
and construction equipment, 
which first gained a Johannes- 
burg stock exchange listing last 
September, expects to beat its 
forecast of earnings of R2.2m 
for the year to June 30, 1982. 
For the six months to December 
profits were Rl-99m before tax: 

The interim- dividend is 8 
cents from first-half - earnings of 
38.1 cents a share. Last year's 
prospectus estimated a total 
dividend for the year of 30 
cents from earnings of 68 cents 
a share. The company, is some 
24 per cent owned by Acrow of 
the UK. 


Advance by 

Siemens 

India 

By R. C. Murthy in Bombay 

SIEMENS 'INDIA has increased 
profits by 33 per cent in (he 
year to September 19S1. the 
first year afler restructuring 
its activities to fulfil the 

. conditions laid down by the 
Reserve Bank of India under 
the Foreign- Exchange 
Regulations Act. 

The offshoot of the . West 
German engineering company 
was asked to sherl the 
marketing of cables and 
electric motors manufactured 
by its associate companies. 
Cable Corporation of India and 
and Bharat Eijlee as a con- 
dition for retaining a 51 per 
cent foreign shareholding. 

In fiscal 19S0. cables and electric 
motors of its associate com- 
panies accounted for Rs 650m 
($70m) of Siemens India 
turnover. But the company has 
made up substantially the 
loss of sales by expanding its 
own production. 

As a result, the fall in turnover 
was only Rs 200m to Rs 1.05bn. 

Profits rose to Rs 128.35m in 
1980-81 from Rs 94.48m. The 
company, has raised the divi- 
dend by two percentage 
points to 20 per cent and has 
proposed a one-for-two scrip 
issue. 

Siemens India "is investing 
Rs 140m to modernise its 
Kalwa plant near Bombay. 
The company manufactures 
switchgear, electric motors. 
X-ray and electro medical 
equipment, measuring and 
control railway signalling 
equipment, and variable speed 
ac/tlc driver systems. 

It has orders on hand worth 
Rs l.OSbn — 17 per cent ahead 
of the previous year’s level. 
It expects to increase sales 
by 25.30 per cent in 1981-82 
but industrial relations 
throughout the country are 
a matted of concern, says Dr 
H. Longer, managing director. 

The company exported Rs 120m 
worth of products in 19SO-81 
and has achieved a break- 
through in winning turnkey 
contracts overseas. It is 
establishing a substation in 
Indonesia, a container ter- 
minal in Oman ami a power 
distribution project in 
Bangladesh. 


ENERGY RESOURCES & 
SERVICES INCORPORATED 

Nee Asset Value 
2Bth February 1982 

$7.64 

per share (unaudited) 


STOCKHOLDERS FAR EAST 
INVESTMENTS INC. 

Net Asset Value 
2Bth February 1982 

$1.85 

per share (unaudited) 


Standard Chartered Finance B.V. 

(tocwporaftjd wW initoJ fiafitfiy andesonfsnftJa; Ararerearr; h TUB Netherlands I 

US$75,000,000 

■Guaranteed Floating Rate Notes 1990 

Convertible unti!1983 into 101 per cent 
Guaranteed Bonds 1990 

Guaranteed omtaubodinated basis as lo payment oi principal, 
premium (d any] and inieres: oy 



Standard Chartered Bank Limited 


{toJttporttsawifohmu&tabwincrqiin# 


In accordance with the provisions of the Notes, notice is hereby given that iorthe 
six monthsperiod (184 (fays) tom 9th March, lo 9th September; 1982 the Notes 
will cany inteiest at the rate of 14 Vr pa* cenL per annum. 

The Interest payment dale will be 9th September. 1982. Payment which will amount 
to US $376,94 per US $5,000 Note, will bemade against surrender of Coupon Na 5. 
The Conversion Interest Amount appfiraWe to Notes which are presented for 
conversion on or before 1st Sefllembet; 1962 will be US $29.90 iu each US S5J700 
Note and will be payable on 30th September. 1982. 


J. Henry Schroder Wagg & Co. Limited 

■ Agent Bank 





5- : 




33 


All of those securities having been sold, this announcement 
appears as a matter of record only. 



Ontario 


New Issue / February , 1982 

$ 200 , 000,000 

Province of Ontario 

(Canada) 

Net proceeds to be advanced to Ontario Hydro. 


15%% Notes Due February 25,1992 

Principal and Interest payable InThe City of New York in 
lawful money of the United States of America. 


Salomon Brothers Inc Wood Gundy Incorporated 

McLeod Young Weir Incorporated 


The First Boston Corporation 


Merrill Lynch White Weld Capital Markets Group 

Merrill Lynch, Piero, Hniwr ft Smith Incorporated 

Atlantic Capital 

Corporation 


Dominion Securities Ames Inc. 
Basle Securities Corporation 


Bear, Steams & Co. 
Dillon, Read & Co. Inc. 

E. F. Hutton A Company Inc. 


Goldman, Sachs & Co. 
Bums Fry and Timmins Inc. 
Bache Halsey Stuart Shields 

Incorporated 

Bell Goutnfock Incorporated 


Blyth Eastman Paine Webber 

Incorporated 

Drexel Burnham Lambert 

Incorporated 

Lazard Frdres & Co. Lehman Brothers Kuhn Loeb 

Inc orpora ted 

Richardson Securities, Inc. 


Donaldson, Lufkin & Jenrette 

Soctulliaa Corporation 

Kidder, Peabody & Co. 

Incorporated 

Nesbitt Thomson Securities, Inc. 
L. F. Rothschild, Unterberg, Towbin 
Shearson/American Express Inc. Smith Barney, Harris Upham& Co. UBS Securities Inc. 

Incorporated 

Warburg Paribas Becker Wertheim & Co., Inc. Dean Witter Reynolds Inc. 

A. G. Baektr 

Greenshields & Co Inc Midland Doherty Inc. Pilfield, Mackay & Co., Inc. 

The Nikko Securities Co. 

International, Inc. 


Dalwa Securities America Inc. 
Nomura Securities International, Inc. 


Yamalchi International (America), Inc. 



30 seconds 
isalong 
timeina 
dealing room 

The new Reuter Money 
Dealing Service gives you, on 
your Reuter screen, dealer-to- 
dealer contact within four 
seconds. 

But if you use telephone or 
telex, it may take you 30 
seconds to get through. On an 
active day Cable may then have 
moved 18 points; and on a 
£1 million deal that could have 
cost $1 800. 

The Reuter Money Dealing 
Service, launched on 23 
February 1981 , already links 
more than 200 banks in 26 
business centres: 

London - New York -Boston 

- Chicago - Detroit - Toronto - 
Amsterdam - Rotterdam - 
Brussels - Luxembourg - Paris 

- Zurich - Geneva - Lugano - 
Lausanne - Frankfurt - 
Dusseldorf - Stuttgart - 
Munich - Hamburg - Bochum - 
Vienna - Helsinki - Oslo - 
Dublin - Milan. 

Other countries will be on 
line shortly, including centres In 
the Middle East and Far East. 



.... 


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World market* a* they move 


Tbr The Martet Manager, Dealing 
Reuterslld 
85 Fleet Street 
. tondcn£C4P4AJ 

□ Please send me further information on the 
Reuter Money Dealing Service 

□ Rtose arrange for me to attend a .. . 
demonstration - . . . 


Name 

Position 

Comoanyflnstftulfan 
Address 


Telephone number 




3* 



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-i v*iivCr 



Finan cial riffles 


Companies and Markets 


WORLD STOCK MARKETS 


- t V . r . ■■ ■ -. 


NEW YORK 


A OF In Jus ties. .. 

AMF 

AW Inti _ 

ARA 

ASA 

AVX Corp 

Abbot Labs ' 

Acme Clove.. 

Adobe Oil w Gas. 
Advanced Micro. 
Aetna Life & Gas 
Ahmsnton h.F.) 
Air Prod & Chem 

Akzona 

Albany Int 

Alberto Ci 1 1 v. 

Albertson's 

AlcanAlummium 
Alco Standard. 
Alexander &AI .. 
Aloalenv Inti-.... 

Allied Corp 

Allied Stores ...... 

Allis Chalmers — 
Alpha Portd ' 

Alcoa ' 

Amal. Sugar 

Amax 

Amdahl Corp . ... 
Amerada Hess.... 
Am. Airlines . ....' 

Am. Brands 

Am. Broadcast's 
Am. Can. . . ... 

Am. Cya'iamid . 
Am. Elect. Powr.- 
Am. Express .. - 
Am. Gen. Insrce. 
Am. Hoist & Ok .. 
Am. Home Prod.. 
Am. Hasp. Suppy 
Am. Medical Inti 

Am. Motor* 

Am. Nat. Resces 

A m.Petflns 

A m. Quasar Pet... 

Am. Standard. 

Am. Stores 

Am. Tel. ft Tel.... 

Ametek (no 

Amfac. 

AMP 

Amstar ... 

Amstoad Inds ■ 

‘Anchor Hockg. . 
Anheuser-Busch 
.Archer Daniels .. 
Armeo 


Armstrong CK... 14% 

Asamora Oil Sis 

Asarco 18% 

Ashland Oil 2512 

Assd D Goods 30 

Atlantic Rich 0073 

Auto-Dnta Prg,... 24% 

AVOO 15 

Avery Inti : 21% 

Avnct 42i* 

‘Avon Prod 24% 

Baker Inti i 26 

Balt. Gas ft EL... 25 

Ban Cal 26 t 3 

Bargor Punta .... 17 

• Bank America 19% 

£ankofN.Y 1 43% 

Bankers Tst.N.Y.i 34% 

Barry Wright , 161 b 

Bausch & Lomb _ 44 
Eaxt Trav Lab.... 1 55% 
Beatrice Foods... i 1BJ* 
"Beckman Instr...: 48% 

■Bekerlnds , — 

.Bell & Howell 197 a 

Beil Industries... 15% 

Sends 1 52% 

Beneficial 14% 


Mar. 1 Mar. 


Columbia Gas....' 30% ■ 30 

Columbia Piet. ..’ 63% 6 Hr 
C ombined int...... 20% - 20U 

CombUSW. €ng.; SB ' 26 h 
Cmwlth. Edison., 21% 21* 
Comm. Satehta.. 54% ; 66% 


Comp. Science ..I 

Cone Mills \ 

Conn Gen. Inn....; 

Gonrac — 1 

Com. Edison ; 

Cons. Foods. ; 

Cons. Fre'ght....' 

Con. Nat. Gas 1 

Conumar Power. 
Cent- Air Lines...! 

Conti. Corp 

Conti. Group....,.; 

Cent, inionis : 

Conti. Tclcp. 

Control Data 1 


Cooper Inds ' 

Coors Adolph...... 

Copperweld 
Coming Glass.. ..' 

Corroon Black. ... 

Cox Broadcast 'g.' 

Crane 

Crocker Nat 

Crown Cork .... .. 

Crown Zell 

Cummins Eng.... 
Curtiss-Wright.... 

Damon .. 

Dana 1 

Dart & Kraft. • 

Data Gen 

Dayton Hudson .. 

Deere ‘ 

Delta Air 

Dennys.. 


Denteply Inti 1 

Detroit Edison....: 

Diamond Inti : 

Diamond Shank.,; 

Di Giorgio _r 

Digital Equip ! 

Dillingham 

Dillon ' 

Disney 'Walt) 

Dome Minos- 

Donnelly (RR) 

Dover Corp 

Dow Cftomloal....; 

Dow Jones 1 

Dresser ...- 

Dr. Pepper. 

Duke Power. 

Dun ft Brad 

Du Pont 1 

EG ft Q._ : 


■Seth Steel j 

Big Theo Inds 

'Black ft Decker 

•Block HR 

Blue Beil 

Boeing 

""Soise Cascade ... 

Borden 

Sorg Warner 

5 ran iff Inti 

Briggs Stratn 

Bristol-Myers.... • 

SP ; 

iErockway Glass.: 
.Srown Forman B 

'Brown Grp 1 

■Brown ft Sharp _ 
Ercwng Ferris. . : 
Brunswick 


20 ! 197? 

20 I 20a? 

13 I S 1 157 a 
34 , 3353 

21 Is ‘ 207? 

18% ; 10JR 

27 lj . 26 t s 
51 ’a 32 
24 . 24 

1% . 1% 
24 j 24 
54 53% 

20% 20J$ 

14 ! 15% 

30 ; 30% 

26% ; 27 
13% I 19% 
28s? | 30 1 e 
19 I 20% 


Sucyrus-Erie i 171? 

Burlington ind .1 19 % 
Burlington Nrthnl 433* 

Burndy j 175* 

Burroughs 33 '3 

CBI Inds 34% 

PBS 5914 

-CPC Int! 37i 4 

psx ; 4334 

Campbell Red L.! IOJ4 
Campbell Soup...! 35% 
Campbell Tagg ... 207a 
- Canal Randolph... 29% 

Can. Pacific I 27 

Carlisle Corp 24% 

Carnation • 29% 

Carp Tech 34% 

Carter Hawley...! 15 

•Caterpillar 46% 

■Celanese Corp ...! 52% 

■ Centex : 22 

Central & Sw | 15% 

Central Soya 30% 

Central Tel Util .. 29% 

■Certain-teed - 10% 

Cessna Aircraft... 16'; 
Champ Home Bid' 17? 

Champ lnt.._ 1 16% 

Champ sp Plug.. 7 

Charter Co 7 

Chase Manhattan 671? 

Chemical NY 547, 

Cheese Pond...-. 32ig 
Chicago Pneum- 14% 

Chrysler 43* 

Chubb —...i 47% 

Cincinnati JUJU-.' 22% 

.Citicorp 27 U 

Cities Service ' 26 

City Invest | 22% 

Clark Eaui pm ent 35 

■ Cievo Cliffs Iron.; 27% 

duett Peaby. ; 14% 

Coca Cola ! 31% 

Colgate Palm-...: 18%. 
Collms Aikman...; 11%' 
Colt inds- 22% 


Eesco i 

Eastern Airlines. 
Eastern Gas ft P : 
Eastman Kodak.: 

Eaton I 

Echlin Mfg | 

Eokherd Jack.... 
Electronic Data.! 
Elect. Memories' 

El Paso 

Emerson Elect—) 
Emery Air Fgt-...| 

Emhart 

Engelhard Gorp.j 


Enserch .1 

Envirotaefi.- 

Esmark- 

Ethyl I 

Evans Prods 

Ex Cell 0 

Exxon 

FMC. - I 

Faberge. 

Feddens._.._ 

Federal Co 

Federal-Mogul ...I 
Fed. Nat. Mort....l 
Fed. Paper Brd.J 
Fed. Resources-! 
Fed. Dep. Stores 
Fiefdcrest Ml-....; 

Firestone • 

1st Benk System; 
1st Charter Fln.j 


1st Chicago 1 

1st City BankTex; 
1st Interstate.—' 
1st Mississippi....! 
1st Nat. Boston ..1 

1st Penn 1 

Fisons 

Fleetwood Ent.J 

FI ex) -van 

Florida Pwr ft t_ 

Ford Motor 

Foremost Mole...., 
Foster Wheeler 
Freeport McM...J 

Froenauf 

GAF 

GATX - 


ia% - ia% 
6 16 % 
19 ! 20 

69 f 66% 
28% 28% 
12 % . 12 % 
18% I 19% 
19% I 30 
3% 3% 

217a 23% 

43% 43% 

10 % 11 % 
317 a 32% 

20% 80% 


19% ‘ 19% 
24% ' 24% 
48T B } 50 
18% • 183* 
13% . 137, 
1834 1 191* 
277, ! 27% 
25 25% 

15% 16 

5% ! 3i« 
20% I 20% 
903, j 20% 

8%. 1 8 
253, 263* 

1 I 7, 
40% 41% 

SI j 20% 
10*8 I 10% 

52% j 32% 
7 7% 


19% ; 19% 
26% 1 253, 
31 j 31% 
10 % 10 % 
41% 41% 

5" !“ 

IVi S*S 

30% 30% 

203 4 20% 

336, 13% 

12 12 % 
166, 16% 
17% | 17% 
9% I 9% 
28 i 38% 


Gannet 1 323, 

Gelco j 18 . 

Gen Am Invest—, 14% 

Gen Cinema 373, 

Gen 0ynemics....| 21% 
Gen Electric....— 1 60% 

. Gen Foods 1 32% 

Gen Instrument..: 327, 

Gen Mills j 363, 

Gen Motors— 393, 

Gen Pub Utilities! 5 

Gen Signal. J .353* 

Gen Tclep Elen— 39% 

Gen Tire — ■ 193* 

Gonesco — —j 4% 


Genuine Parts— 

Georgia Pac. 

Geosource 

Gsrbes Prod..._, 

Getty Oil 

Giddlns Lewis,... 

Gillette 

Global Marine... 
Goodrich (BF1— , 
Goodyear Tire... 

Gould 

Grace 

Grainger (WW)„. 


Indices 

NEW YORK —DOW JONES 

1 1 • 1 . 1 1 

■ Mar. j Mar. . Mar. , Mar. Mar. j Feb. [■ 

. a ! 4 ! -3 a ■ 1 • 26 



Gt. Atl. Pac. Tea. 5 | 43* 

Gt. Basins Pet. 3 . 3% 

GtNthn. Nekoosa 34 . 34% 

Gt. westFinancf. 20 % 104 

Greyhound...-.../ 14 r 8 : is 

Grumman 23%- 1 25% 

Gulf ft Western-.- 16% ! 13% 


Gulf OH I 

Hall IFB! : 

Halliburton 1 

Hemmermlii Pprj 

Handlaman 

Hanna Mining. .. 
Ha r court Brace..! 

Harris Bancp : 

Harris Corp 1 

Haraco ; 

Hecfa Mining— 

Helnz(HJ) 

Heller Inti— 

Hercules 4 [ 

Hera hey 

Heubleln 

Hewlett Pkd ' 

Hilton Hotels 

Hitachi J 


Holiday Inns ...— 1 

Holly sugar ; 

Homestake ! 

Honeywell 

Hoover...- ; 

Hoover Un|.. 

Hormel Geo.v. ...' 
Hospital Corp. ... 
Household lntl... : 
Houston Inds. ... j 
Houston Nt Gas.. 1 
Hudson Bay Meg 

Hughes Tool 

Humana; 


Husky Oin 

Hutton (EF> 

ICInds. 

INACorp 

IU Int— 

Ideal Basic Ind.. 

Ideal Toy 

ICI ADR 

Imp Corp Amer... 

INCO 

tngerso! Rand...., 

Inland Steel 

Intel 

Inter First Corp.. 

fnterlake 

Inter North 

IBM - 


MGM J 6% 

Metromedia 1171 

MMton Bradley... 16 
Minnesota MM— 64 

Missouri Pac J 547, 

Mobil - „.| 21 

Modem Me rohg. 8% 

Mohasco 10% 

Monarch MlT : 17% 

Monsanto -| 68 

Moore McCmric.. 24 

Morgan (JP) 85% 

Motorola j 53% 

Munsingwear .... 143, 
Murphy (GC) ...- 12% 

Murphy Oil 18% 

Nabisco Brands. 32% 

Nalco C hem I 477, 

Nape© In Poetries' 15 

Nat. can 1 20% 

Nat. Detroit- ; 22% 

Nat. Dist. Chem.. 1 22 

Nat. Gypsum : 203, 

Nat. Medical Entj 137? 
Nat. SeftHcductr. 193, 
Nat. Service Ind-! 23*a 
Nat. Standard 13 

Nat. Steel — I 20% 

Natomas. -I 16% 

NCNB - J 13% 

NCR. .' 41% 

New England EI..J 26% 
NY State E ft G-.; 16 
NY Timas— 34% 

Newmont Mining! 31% 
Nlap. Mohawk-.! 15% 

NicORInc _.| 273, 

Nielsen IACI A...J 427, 
NL industries — A 23Sg 
HLT : »3% 

Norfolk ft Westni 44% 
Nth. Am. Coal —j 307, 
Nth. Am.l Philips 323, 
Nthn. State Pwr. 27% 
Northgats Exp... 3% 

Northrop - — 46 

NWen Airlines— 285# 
NWest Bancorp.. 21 

Nwestlnds 60% 

Nwestn Mutual. J 9% 
Nwest Steel W- 183, 

Norton 53% 

Norton Simon — 20% 
Occidental Pet 19s, 
Ocean Drill Exp.| 18% 

Ogden - — .: 24% 1 

Ogitvy ft Mrth. ...I 293, 

Ohio Edison 1 12% 

Olin 19% I 

Omark. —i 14% 

Oneok — • 26% J 


Schlltz Brew 
Sehiumbeger- 

SCM 

Scott Paper.. . 
Scudder Duo 

Seaeon 

Seagram 

Sealed Power 

Searle >GD) 

Sears Roebuck 
Security Pac — 

Sedco 

Shell Oil 

Shell Trans... . 
Sherwfn-Wms. 

Signal .... 

Slgnode 


1SU ! 12% 
. 43% ! 43 
.. 21% 1 217, 
.• IBS, * 17% 
.: 11% ; 117, 
19% ! 20% 
61% ! 61% 
. 26% j 26% 
.. 317, j 33% 
; 18*5 18% 

563} 1 36% 
27% ; 2B3, 

, 28% 1 30 
. 247 3 j 24 t, 
. IBS, > 183, 

. 21% j 21% 

, 49 483} 


Simplicity Pats 

Singer 

Skyline 

■Smith Inti 

Smith Kline ' 

Sonasta Inti ■ 

Sony 

Southeast Bankg; 
Sth. Cal. Edison..' 

Southern Co | 

Sthn. Nat. Res.... 
Sthn. N.Eng. Tel.; 

Sthn Pacific 1 

Sthn. Railway-—! 

Southland ' 

sw Baneshares..; 

Sperry Corp 

Spring Wills 

Square D 

Squibb 

Std. Brand, Paint; 


8 % • 8 % 
13% ; 13% 
12 % ! 12 % 
29% ! 309, 
65% t 64% 
9% I 9% 
Z3% 13% 

143} . 14 S* 

31 I 31% 
12% ! 12% 
223* 1 227, 
42% ! 42% 

32 i 313* 

84% < 89 
27% ' 27% 
26% : 27 
28% : 283, 
20 . 203} 

24% 24% 

301? 30% 

22% I 22% 


Std OH Cllfornia. 
Std Oil Indiana... 

Std Oil Ohio. 

Stanley Wks 

Stauffer Chem — 

Sterling Drug > 

Stevens UP) 1 

Stokely Van K—| 
Storage Tech. __r 

Sun Co [ 

Sundstrand 

Superior Oil. 1 

Super VaJ Str*...,' 

Syntax. — ... ,- t 

TRW -I 

Taft 

Tampax- ! 


29% * 297, 
35% ■ 56% 
31% | 511, 
15% , 15% 
18 | 187, 

23% j 233* 
18 ! 137, 

28% I 29 
26% j 27% 
293, ] 293, 
39% I 40% 
233, I 23% 
16% 17% 

65% ! 66% 
46% : 46% 
30 I 29% 
327, 327, 


inti. Flavours .....< 
Inti. Harvester. J 
Int.tncome Prop. 

InLPaper 

Int. Rectifier. 

Int. Tel ft Tel 

Irving Bank 

James 1FS1. 

Jeffn-Pitot ; 

Jewel Cos- 

Jim Walter 

Johnson Contr....! 
Johnson ft Jns— | 
Johnthan Logan. 1 

JoyMnr 

K. Mart i 

KarserAlum- 

Kaiser Steel- J 

Kaneb Sendees.. '■ 

Kaufman Brd 

Kay Corp -...I 

Kellogg — 

K ennamotal 

Kerr-McGee 

Kidds 

KJmbertey-Clark. 
King's Dept St.... 
Knight Rdr. Nws 

Koppera 

i Kroehler ; 

Kroger 

LTV - 

Lanier Bus. Prod! 

Lear- Stagier 

Lease way Trans.! 


Lenox i 

Levi Strauss | 

Levttz Furntr 

Libby Owens Fd.l 

Lilly lEUi ' 

Lincoln Net 

Litton Inds,..;. 

Lockheed. 

Loews 

Lone Star Inds ... 
Longs Drug Strs. 
Louisiana Land - 
Louisiana Pac 

Lowenstein.,. 

LubrUol-.— — 1 

Lucky Strs i 

Mia Com. Inc —I 

MCA - 

MacMillan | 


143* | is 
8l( 9% 

10% 8% 
22% ! S3 
30 >4 I 506? 
29% 30 

20 j 20% 
60% 697, 

2% 23| 

28% ' 28% 
147, j 15% 
8 ! 7% 

28 ; 28 
137, , 141* 
18% | IBS* 
233* | 24% 
26 26% 


355* 1 35% 
22% | 223* 
25% , 84% 
21% *13* 

63% 54% 

42% 41% 

48% 807, 

437, ; *61 B 
86 % 86 % 
23% 22% 

26% 257, 

24% .24% 

18% j 181, 

267, j 27% 
17%. , 18% 
15% . 13% 
18% ! 18 
45% 46% 

16% 15% 


OutboardMarlne 
Overseas Ship • 
Owens-Corning .. 
Owens-Illinois....! 

PHH Group -J 

PPG inds .J 

Pabst Brewing. J 
Pac. Gas ft Elects 
Pac. Lighting—: 
Pac. Lumber J 

Pao. Tel. ftTel.. ..I 

Palm Beach j 

Pan. Am. Air. < 

Pan. Hand Pipe-) 
Parker Drilling...! 
Parker Hanfn..—| 
Peabody Inti..—. 

Penn Central I 

Penney (JO- ' 

Pennzoil. -J 

Peoples Energy l 

Pepsico 

Perkin Elmer ' 

Petrie Stores 

Petrolane .......... 

Pfizer '■ 

Phelps Dodge ... : 

Phlla Eleot - 

Phibro • 

Philip Morris ' 

Phillips Pet —. 

Pllltbury - 

Pioneer Corp 

PKney-Sowes ... 

Pittston 

Planning Ras'eh 

Plessey 

Polaroid 

Potlatch 

Prentice Hall 

Procter Gambia. 


20 ; 20 
13% I 13% 
183* 177, 

34% 237, 

ao 203* 

30 I 30% 
13% ; 13% 
22 | 22 % 
23% - 33% 
217, [ 21% 

18% ; 18% 
13% ! 13% 
3 j 3% 
31% 32 

13 13% 
18% 18% 

5% 5% 

23 227, 

82 32% 

40 38% 

77, 77, 

32 32 

197, 197, 

21 21 % 
13% 13% 

51% 52 %■ 

23% 23% 

14 14 

226, 23% 

46% 46% 

29% 29% 

42% I 413* 
18% • 19 
24% ; 243* 
18% : 18% 

6 % ! 6 % 
68% ' 657, 
18 18% 
223* 23% 

295? I 25% 
I tau 


Tandy 283, 

Teledyne 1203* 

Tektronix-—.' 45 

Tenneoo 1 26 % 

To sora Pet 183* 

Texaco ' 29% 

Texas Comm. 6k 33% 
Texas Eastern.-.: 39% 
Texas Gas Tm,„. 237, 
Texas instr'm'ts. BO 
Texas Oil ft Gas.. 24 

Texas Utilities 207* 

Textron J 21 % 

Thermo Electro... 16% 

Thomas Betti 47% 

Tidewater 23% 

Tiger Inti - ! 73j 

Time Ina. : 35% 

Times Mirror.—.; 43% 


Timken ............ 

Tipperery- 

Tonka 

Total Pet 

Trane 

Transamarlea. 

Tramway 

Trans World- 

Travelers - 

Tri central 


-I 66 I 56% 
... ! 10 % 12 % 
.... 24% I 23% 
J 83* fl% 
27% 28% 

-j 207, 204, 

...j 21 ! 211, 

... 20 • 19% 

... 48 J, 49% 
- 6 % ! 6 % 


Trl Continental- 
Triton Energy—., 

Tyler - 

UAL- 

UMC India. 

Unilever N.V. 

Union Camp. ...... 

Union Carbide.... 


17% | 177, 
103. I 117, 
181* 19 

19 187, 

8 % ! 8 % 
. 61% ! 613* 
, 463* 46% 

, 43% | 44% 


827, ! 83% I Union Oil Cal. 


Mac ‘ -.' 

MferayHanover.-! 
Manville Corn.—.; 

Mapco-. ■ 

Marathon Oil 

Marine Mid I 

Marriott. I 

Marsh McLenn.M 
Marshall Reid ...I 

Martin Mtta 1 . 

Maryland Cup— 

Masco. : 

Mossay-Fergn....; 
Mass Multi.Corp 

Mattel I 

Way DepL 3trs_| : 


Maytag — 

McCulloch J 

McDermott (JR)..' 

McOonqlds : 

McDonnell Doug. 
McGraw Edison.. 

McGraw-Hill J 

McLean Trukg ..., 

Mead J 

Madia Gen I + 1 

Medtronic — ‘ 

Melton Nat! 

Melville 

Mercantile Sts 

Merck 

Meredith 

Merrill Lynch 


Pub. Serv. E A G.i 19% 
Pub. S. Indiana— 22% 

Purax : 26% 

Pu relator 29 

Quaker Oats ! 38% 

Quanex — 1 13 

Questor 9 

RCA- ....-1 193* 

Raison Purina — j 13 

Ramada Inns 8% 

Rank Org..ADR J 5% 

Raytheon. —j 30% 

Reading Bales — ( 14% 
Redman Inds 10% 

Reeves Bros 1 633* 

Reichhold Chami 103* 

Republic Steel...! 21% 

Rep of Texes ! 26 

Resoh Cottrell....; 12 
Resort Inti A 16% 

ReveoIDS). -J 21% 

Revere Copper - 10% 

Revlon - 303, 

Rcxnord 12 >« 

Reynolds (RJl 46% 

Reynolds Mtla 19% 

Rite Aid- - 30 

Roadway Expi... 3 is* 

Robbins iAHj 12 

Rochester Gas..., 13% 

Rockwell Inti - 27% 

Rohm ft Haas-...: 463* 
Rollins I 147, 


Rolm r 

Roper Corp 

Rowan ! 

Royal Crown — -. 

Royal Dutch 

Rubbermaid 

Ryan Homes 

Ryder System-.. 
SFN Companies- 
SPS TechnoTgles 

Sabins Corp 

Safeco 

Safeway Stores .. 

SL Paul Cos- 

St Regis-Paper... 

Santa Fe Ind#. , 

Saul Invest 

Saxon Indus. — ... 
Sobering Plough.: 


Union Pacific—-- 333* 

Uniroyal - — 1 7% 

Untd Brand*. ; 9% 

Utd. Energy ResJ 29% 

US Fidelity G. | 45% 

US Gypsum— J 293* 

US Home — I ll’a 

US Jnda I 83} 

US Shoe 1 24% 

1 US Steel.- 1 25% 

US Surgical 183, 

US Tobacco—. — I 437, 

US Trust 35% 

Utd. Technolgs- 33% 
Utd.TelecommsJ 18% 
CJpJahn - — 45 

VF 1 31% 

Vartan Msocs.... 29 
Vamitron — j 93* 


Virginia EP \ 

Vulcan Metric 

Walker (H> Res... 
Wal-Mart Stores. 

Wamaco 

Warner Comms.. 
Warner- Lam bt ... 
Washington Post 
Waste Mangt...— j 

Weis Mkts 

Wells Fargo..—. 
W.Point P«pDi.,., : 
Western Airline* 
Westn. Nth. AmrJ 
Westing ho use.—' 

Westvace ) 

Weyerhaeuser—.; 

Whaeiabratr F — j 
Wheeling PlttS- 

Whirlpool 

White Consoltd-: 

Whittaker 1 

Wlckes 1 

Williams Co. 

Winn-Dixie Str.—) 

Winnebago 

Wise Elec Power 
Woolworth ....... 

Wrlgley - 

Wyly 

Xerox ‘ 

Yellow Frt Sy* 

Zapata 

Zenith Radio 


13% ! 12% 
40% ; 42% 
11T, • 12% 
41 : 41% 

26 243* 

64% , 53% 
22% | 23% 
28% , 283, 
28% ' 27% 
38% 38% 

23 ! 23 

197, : 20% 

* i 4% 
103, j 107, 
22 % | 22 % 
81% 81%' 
86% J 27% 


28% j 28% 
35% 1 25% 
25% j 26% 
24% 24% 

25% I 26 
7>i I 77, 
19% 19% 

31% 31% 

47, I 45* 

30% ; 293} 
17 . 17% 

303* j Sl% 
77, j 77, 
36), 36% 

13% 13% 

17 18 

12 % | 12 % 


j 1981 -82 [Since CmWITn 
J High [ low I High ] Low 



Fob, 33 Year ago (approx 


FRANCE . || 

CAC General (SlriMT) tH.4 1M.M 1 W1J 1M.7 112.8(1713/17) T7j (16/«) 

Ind Tendance (51/12/21) 1UL1 WB.M1174 11M 12fJ (Hfl/W 97.7 (4/lrt3) 


Indust'ls 

. Composite i 

| 1 20.25] 

1D9.S4 

[ 

; 121.5 ij 

i 109.88! 

1 ] 

122. 78j IS4Jfl! 12B.B0I 

llB.Bi 112jtf 1 13.3 1 

L ‘ 


Mar. 5 1 Feb. 24 


6.00 5.83 


Ind. P/E Ratio 


Long Gov. Bond yield 


NY. S.E. ALL COMMON 
; ' | 1 I 

M2f. : Mar. Mar. j Mar. - 


Mar. ; Mar. j Mar. j Mar.! - » ^ ‘-S® ! J 1 ® 

S j_4 1 3 ! 2 ; High j Low \ 

FllJEjSSQ^4 146S14 79,14 1 63 BO Unchanged-..— 385 i 356 1 33 1 
63.14 63.5UM.14 00.14, ra * omu New Highs. 27 26 25 

! ’ ^ NOW LtWS 816! 237 1 174 


High j Low [ High j Low 


167.02 \ 120.85 1 1B0.M 


Feb. 17 | Year ego (approx) 


4.58 


9.27 


Rises and Falls 

1 Mar. 5 Mar. « Mar. 3 





Mam 

HOLLAND 

ANP-C8S General (1BT0) 

■ W.1 

96.8 : 

IM 

ANP-CBS Indust (1370) 

69.5 

sa.B 

70.5 


HONGKpNG . j. ,114043' j I 

Hang Sang Bank(B1/7/84jllSJST160.B8 I11SG.E9) 1510^0(17,7) j VliJJ (MB) 


Barca Conlm ItaJ.fW?) 


192JD (tit) I 188,44 (24(7) 


JAPAN- 1 i | i 

Dow Avarafla (18/2/48) 17248.47 ?2».54'7®4.rc7474.42 ! 8018.14 H7/S) nS/J/ST) 

Tokyo NSW SE (411/88) j MUM. 644^0; 847.881 B64.HI 803^2 (17/sj j <35! 78 (W1/8D ' 


NORWAY 
Oslo SE (1/1/72) 


.SINGAPORE 
Straits Times (lBSS) 


• j 117.48 116.96- 118,70; 11E.1BI 146.72 (8/8) | 110.14 (8/8) 


; i 

mm 


I : 

! 1 


(U) : 4SB.B 
(U) ;.«M i 

*39.8 1 
, UU 1 

<59,1 

MM 

! 797.8 (7/1/81) 

1 711.7 Wl/82) ; 

<55,0 F5l!rB2) 
557 JS (5/%fiI) 


1WCNTREAL 


Mar. 1 Mar. I Mar. ; Mar.' 
i 1 ' 4 ■ 3 2 


Madrid SE (88/12/81) I (e) ; lfl4.S2< W4.1 


* Industrials j C31.44 *84^8; 298^22 488.H (27/4) 281.44 (5:6/82) 

Combined I 2E8.B*; 27l!l7l 274.04; 27B.88 876^8 Q5/8) 288J4 15/0/82? 

- TORONTO Composite: 16006! IQ&a! 1B40.BI 1677,8! 2390# (18/7) 1600.5 Si 5/82) 


1D7AB (9/2/82) 1 H.17 (6/1/12) 


8M.il (18/8) 1484.17 (W1/11) 


NEW YORK ACTIVE STOCKS 

Change Change 

Sleeks Closing on ?*?.*« Closing on 

tradod pnea day d *X 

1 663 500 28*8 + ^ Data General . ^7,900 . ZT, 

1. 112.900 19 s , ;+2*, Schlurofwgsr * 643.800 .».■> 

— ' -Gw- .Motors . .. gZf-lOJ 337* „+ h 

I.CG9.1OT 58«, - H Texaco ......... £24 -3X) 34 — , 


ism 1.UWJ.1UJ - 1 rr;iri -1 , 

No. Inds. Ps. 1.007,400 1«* + ** Gnodyeor Tyre 584,300 + h 


SWITZERLAND ’ 1 

■ Swiss Bank Cpn.(31/1g/E8)j 248.7 260J0I *L\ (iri | WJ (2/4) ; wu (T7/11) 


WOULD t . f | 

Capital Inti. (1/1/70) \ ‘ - ! ISI J^ g2J) 1«J? 1B2J (Bjl/81) j .«i j aiSiBXi 

{— } Sat Feb ZT. Japan Dow 7440,46. TSE 554.15, 

Bass vsluaa of all bufiaes UB.U0 neapt AuftmlM AH Oidtoiiy md Uetalp— 

600; NYSE All Common— 5ft- Stwiderd end Poors— W; and Toroito— 1.000: the 
l8*t lumstf based on <7575. tfirc iutRog be a d s. t400 Industrials. J4O0 

Industrials plus 40 UtUittsa. 40 Fbwndsia and 20 Transports, a dosed. 
1 u Un sva Liable. 


Opening Wall St 


A GOOD deal of a strong opening 
rally on Wall Street yesterday 
was lost by mid-session, as 
Initial euphoria over an interest 
rate cut gave way to continuing 
concern about the outlook for 
the U.$. recession. 

The Dow Jones Industrial 
Average, which showed ' a 
recovery of 9.52 at the 10.30 am 
calculation, was up only a net 
2.67 at 810.03 by 1 pm. The 
NY5E All Common Index was a 
mere 8 cents firmer at $63.22 oq 
balance, after touching $63-58, 
while gains outs cored declines 
by eigh£-to-five « mid-session 
after an initial -ihree-to-one lead. 
There waa a large turnover of 
43 -30m shares but fell short of 
Friday’s 1 pm figure of 47.82m. 

Analysts attributed the initial 
rise in the market to a cut in 
the Prime Rate to IS per cent 
from 16 } by several major 
banks. 

However. analysts said 
investors are still pessimistic 
about the outlook for _ the 
economy and the longer-term 
prospects for interest rates. 

Analysts noted that the large 
Federal deficit projected for 
next year continues to worry 
investors, as it will require 
Increased Federal borrowing, 
which could place renewed 
upward pressure on interest 
rates. 

The sharp drop in gold and 
silver prices was reflected in 
Precious Metal stocks. ASA was 
off 1 } to $28}. Homestake 14 to 
$19, Newmont * to $31 and 
Heels | to 57?. 

THE AMERICAN SE Market 
Value Index was a set 0.35 down 
at 250.34 at 1 pm, after rising 
to 253.23 at 11.00 am. Volume 
3.71m shares. 

Canada 

Markets were easier inclined 
at mid-day after a fair trade, 
with Golds leading the weakening 


Closing Prices for North 
America were not available 
for this edition. 


trend. The Toronto Composite 
Index was off 2.6 at 1,597.9 at 
noon, while Golds- lost 47.2. to 
2,036.6 and Metals and Minerals 
4.0 to 1.52B.0. Oil and Gas, how- 
ever, edged up 0.7 to. 2500.9. 

Delhi Pacific said it has ended 
talks to acquire an exploration 
concession in the United Arab 
Emirates. The stock was halted 
at the opening at 63 cents and 
resumed at 60 cents. By mid- 
session, it was off 13 cents at 
50 cents. 

Tokyo 

The market' yesterday saw- 
some relief from the - recent 
depression, with many Blue 
Ghips staging a rally on bargain 
hunting. However, speculative 
issue b c awe under sailing pres- 
sure towards the end of the day 
and dosed mostly weaker, wfeile 
Construction companies and 
other low-priced domestic issues 
tended to decline. 

The Nikkei-Dow Jones 
Average, which lost 37.69 more 
in the Saturday half-day session,, 
was only 0.62 harder at 7,248.47, 
although the Tokyo SE index. 
2.67 lower on Saturday, regained 
1.02 at 541.8. Volume was a 
modest 210m shares. 

Toyota Motor gamed 730 to 
Y942 os reports that the com- 
pany and General Motors, of 
tbe U.S» are negotiating for a . 
possible joint production of 
small cars in the U.S. Ube 
reports encouraged other Motor 
issues, -with. Nissan rising Yll to 
Y751 and Honda 713 to 7668. 

Precision Instruments, Light 
Electrical, Gonnminicatioasi 
Heavy Electrical Machines and 
other Blue Gh^s were higher on 
limited buying. Matsushita 
Electrical put on Y40 to Y1.070, 
Nippon Electric Y28 to Y7S5. 
Fuji Photo Y60 to Y1.290, 
Hitachi Y12 to Y625, Canon Y12 
to Y810, Sony Y40 to Y3.230 and 
TDK Electronic 7130 to Y3.350. 
rytaletaoi stodhi cmfwyp ybgk . 

Germany 

Bourse prices were mixed-to 
firmer in quiet trading. Again 


larking much foreign buying in? 
terest, the market made little 
response to a strongly laHymg 
Domestic Bond market Also 
failing to make little positive 
impact on share prices- was the 
relatively, low 4-2 per ceetwage 
increase accepted by some metal- 
workers, and expected, to . form 
the patera for settlements this 
year. The Conimembank index 
edged up JL3 ..to 71flt5L . 

.What active baying interest 

there was mainly centred bo 
Siemens, which reacbed^a peak 
of DM 225.50, before closing up 
DM 3.30 at DM 224.50. Else- 
where . is Electricals, . Brown. 
Boverl rose DM 5 to DM 226 and 
SEL advanced DMXSO^both in 
thin markets. 

Domestic Bond - prices scored 
-gains ran g in g . tp DM A- The 
Bundesbank sild on - balance r-a. 
heavy DM 106.5m of public sec- 
tor Bonds. 

Australia 

A rallying tendeucy developed 
in the Sydney stock market 
yesterday as Initial overseas buy- 
ing ’ prompted - local bangto 
hunters to pick up discounted 
leading stocks. However, the 
Melbourne SE was dosed for a 
local holiday. 

Hie buying posSi began m 
London t&e- last Friday as 
dealers tiiere' 'learned of th e 
favourable UB. money supper 
figures and decided tihe tSme was 
ripe to buy. 

The All Ordinaries. .Indwc, 
whaob retreated 28 points last 
week, recovered '4.6 to 469.5. 
The Metals' and; Minerals index 
regained 8 2 to 334.6 and Oil and 
Gas 10.6 to 397 j5. 

Overall market leader BHP, 
last week the teegat of: intensive 

selling which art 8ft ceoto off its 

price, recraiped 18 cents at 
AS7.62, whfle CSR retriew^i 8 
cents at AS3-06. 

; Golds were mixed . after a 
fimier . pCTtonnaitte -.- by . Gold 
Bullion in Hong Kong. Central 
Norseman was up 5 cents at 
AS3.00. GMK eased 15 cents to 
A$2.80 and Peko-Wallsend put 

on 5 cents to A$4.90. 

On announcement that Gpec 


' tatiros may peek inTwar pm- 
daction level* to bolster faffing 
crude prices led to an up- 
torn -for roost- OS tows, CJare* 
mont tflekerf up 8 cento to 75 
cents. Sabtos: 12 cents to 
sad WoodsWe 6 ceate bhhs. 

Hong^Koag' 

;• After recovering some ground 

last Friday, the market- started 
on a steady - note • -yestexdBy, 
helped by results from Hug 
Scng-Bank, "which were geaendiy 
considered satisfactory. ■ Haw- 
ever, stocks subsequratly re- 
verted to their recent weaken- 
ing trend, to leave the market 
substantially lower on the day 
after farther tight trading, . . . 

A few gloomy rumours cir- 
culated yesterday , co ncern ing 
toe hard-pressed ...propfttr 

market but analysts .said - that" 
the geoend -lack ^pufidojee 
in equities ami a lack of buyers, 
even at these share pnee tevete , 
were a large part responsible 
for the resumed fall. . 

The Bang Seng index. whltfh ‘. 
recouped 18 points oa FrUay, 
receded 33.56 to 1,12536. . Turo> ■ 
over on the four’ eschangw 
totalled HKSlM.13in. against . 
Friday’s HK$19&36m. . . 

- Hang Seng Bank ended HKSI 
off at HK8109, while Hoag Keag 
and Shanghai Banking, ahead, of 
today's annual results, held .up 
fairly weH, losing only 10 cents 
art HKS14.00. Ho wever X^Mta* 
Kong fell 80 cents to HK$14.4fl. 
Hong Kong land © .oenta-to 
35 cents to HK$6.50, Sardine 
Matheson HK$t-00 to HKSM.ft 
and China Eight 40 centr to 
HKW1.8&- -- 

Outside tiii. leaders, Garrhm 
Investment fell 32,5 crate . to 
HKS3-475. Brokers said that the 
property company was tite -Mb . 
ject of a few rumours that It bad : 
..trouble wiHi a devetoptneniL.-- r ' • 

; Joh^nDesbarg .. 

: The fresh fall. in. the BuHfap 
price took Gold shares Iwet to 
thin dealings. President Steyn 
shed R2^5 to R28.00, Driefojrtrta 
rj .70 to R20.80 end Kloof KL50 
toR26^0. .. • 





AMCAIntl.. 18% 

Abitlbi ao 

Agnlco Eagle -...' 5% 

Alcan Alumin-... 83% 
Algoma Steel— J 34% 

Aabeatoa .....J 13 

Bk. Montreal J 88 

BK. Nova Scotia, j 21 % 
Baslo Resources] 8.66 

Bell Canada...... 18 

Bow Valley- 12% 

BP Canada.- 87% 

B rescan A — »»«*-- 1 

Brinco 5% 

B. C. Forest 9% 

ClLlne. 86 

CadlllacFairvlaw 9% 

Comfio Mines 15% 

Can Cement 9% 


Can N W Lands-. 

Can Packers 

CanTnisco.— ~ 
Can Imp Bank.... 

Can Pacific.... — 

Can P. Ent. ......... 

Can Tire — 

Chieftain I 

Comlnoo- 

Cons Bathst A. 
Corrt Bit Canada] 
Coeeka Resro'es i 

Costaln 

Daon Deve) -| 

Dsnlaon Mines ...j 
Dome Mines— 


Dome Petroleum', 9 
Dom Foundries A- 34% 
DomStoree...— ., 18% 

Domtar — . 19% 

paLxeaHickel.. — ] 60 

Ganstmr 18% 

Gt. -West Life 256 

gulf Canada— .... 11% 
GuKstraamRes— 3.10 
Hawk Sid. Can— 18% 

Kolllnger Argus- 88 
Hudson Bay Mng 80 

Hudson's Bay 80% 

do. Oil ft Gas- 46% 

Husky oil 6 

I mas co — 41 

Imp Oil A 81% 

Inco- — 18% 

Indai — — 13% 

Inter. Pipe. J 147, 

Mae Bloedal.—... 81% 
Marks ft Spencer 9% 

Massey Ferg 8.67 

McIntyre Mince- 32% 
Merland Explore 6% 

Mitel Corp 867, 

Moore Corp— 38% 

Nat. Sea Prods A 7% 
Noranda Mines -i 17% 

Nthn. Telecom—! 83% 
Oakwood Pet..... 7% 

Pacific Copper... 1.59 
Pan oan Petrol... 68 

Patino. 88 

Placer Dev. 12% 

Power Corp. — 18% 
Quebec Strgn — 2.01 

Ranger Oil 6% 
Reed Stenhs A .- H% 

Rio Algom 38% 

Royal Bank. 82% 

RoyalTrustao A- 13% 
Sceptre Res—. 6 

Seagram — . 61% 

Shell can oil 16% 

Steel of Can A— i 86% 

reck B. 8% 

Texaco Canada- 23 
Thomson News A 84% 
Toronto Dom Bk. 27% 
TransCan Pipe ... 844* 
Trans Mntn. OH A 9 
Utd. Sisco Mines 4.7B 
Walker (H) Rea... 14% 
Wastooat Trans- 13% 
.Weston (Geo)...... 36 





85, 

83% 

24U 
87% 

“S-lc 

4.90 
147, 

13 
3B% 














































































■'J J. 

% 

ed 


■ 


. Financial Times Tuesday March 9 I9S2 


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Coqnaitt and Markets 


COMMODITIES AND AGRICULTURE 


Bonn in 
doubt on 
cocoa levy 

BONN— West Genoauy has jjot 
jiBaally decided on its attitude 
- to-* possible increase in the 
ZpfernationaJ Cocoa Organisa- 
tion (ICCO) buffer stock con- 
tribution levy to 3 cents from 
t&e present Sc, government 
dfieials said here yesteTday. 

.. The decision, to be made this 
before the. ICCO council 
meeting begins on March 15, 
Will largely depend on the out- 
coine of a meeting of the EEC's 
raw materials- committee in 
Brussels on ' Thursday, 

The committee meeting will 
show whether West Germany's 
EEC partners are stUl fully 
behind a further levy Increase 
or whether they will concur 
With the .German view that 
there is no urgent need to 
increase the levy.. 

The officials said Denmark 
also appeared to oppose a levy 
Increase- but its decision would 
probably follow West Germany's. 
The attitude of other EEC 
countries would probably 
weaken if, as seems likely, the 
buffer stock manager achieves 
more favourable conditions for 
a $75m loan, they added. 

Brazilian baDks originally 
offered loans of $75m or $120m 
on the- basis, of a 2c or 3c levy 
respectively. The ICCO council 
decided in January to raise the 
levy to Sc from lc. - 
H better conditions are 
achieved. West Germany thinks 
a decision on a possible increase 
in the levy can wait until funds 
from the $75m loan are 
exhausted. 

The officials ■ were unsure 
whether ■ the : Brazilian banks 
had offered better terms. but 
said other . banks Including 
German and Arab interests had 
shown interest ' in providing 
finance. Reuter 


Report on 
Florida citrus 
damage 

NEW YORK — Orange; trees 
in the south west portion of the 
.Florida citrus . belt were hit 
hardest by a damaging freeze 
there in January, according to a 
survey by Florida Citrus Mutual, 
the growers' group. 

In those areas and other 
isolated groves where the 
coldest temperatures were 
recorded, some trees have 
already died and. others will 
require extensive pruning. But 
mild weather since the January 
12 freeze has promoted " excel' 
lent recovery ” in most areas the 
group said* '■ ■ _ 


Decline in gold hits 
base metal prices 


vr JOHN EDWARDS, COMMODITIES EDITOR 


BASE* METAL prices came 
under renewed pressure yester- 
day following the further decline 
dn gold, platinum and silver. 
Copper higher-grade cash 
dropped by £18.25 to £821.5 a 
tonne: cash lead also fell heavily 
losing £20 to £328,5 a tonne wip- 
ing out much of last week’s 
gains. 

Tin prices continued to be 
sustained by support buying, 
believed to he on behalf of the 
International Tin Council buffer 
stock. 

At the first day of the special 
emergency meeting of the Inter- 
national Tin Council in London 
yesterday it was reported that 
consumers had opposed a pro- 
ducer proposal to introduce 
export controls. 

Reuter reported that consumer 
delegates claimed even drawing 
up preliminary arrangements for 
export controls would he prema- 
ture. However there seems little 
doubt that the meeting, which is 
due to end today, will agree to 
call up further contributions to 
the buffer stock, due both from 
producing countries and volun- 
tarily from consumers. 

It is thought the Council may 
■also authorise the buffer stock 
to seek bridging loans from 
banks to cover any delays in con- 
tributions being received.- An- 


other meeting may also be held 
to review the market situation 
prior to the scheduled routine 
meeting already fixed for April 
20 to 23. 

The enormity of the buffer 
stock's task in keeping prices up 
was highlighted yesterday when 
it was' revealed that tin stocks 
held in the London Metal Ex- 
change last week jumped by 9435 
tonnes to a massive total of 
37,175 tonnes. This follows the 
big rise of 7,745 tosses the pre- 
vious week. 

In the circumstances, the 
London Metal Exchange have 
decided not to go ahead with ask- 
ing ring-dealing members for 
details of their tin positions and 
are expected this week formally 
to lift the £120 a tonne limit on 
cash tin for delivery the follow- 
ing day, imposed last month. 

There was also another sub- 
stantial rise for the second week 
running in copper stocks, which 
last week increased by 3,200 to 
a total of 128,025 tonnes. 

The stocks nse added 'Jo the 
selling pressure in the copper 
market, already depressed by 
the fall jn gold, cuts in U.S. pro- 
ducer prices and general gloom 
about the American economy,, in 
spite of yesterday's cut in some 
prime interest rates and hopes 
of a reduction in UK base rates. 


Reuter reported from Lima 
that miners at Lbe Southern 
Peru Cuajone mine bad post- 
poned for a week the “ indefinite 
strike" that was due to start 
yesterday. Cuajone is Peru’s 
biggest copper mine, but has 
been plagued by a aeries of 
disputes. 

Lead values were hit by both 
the decline in copper and a rise 
in warehouse stocks of 2.550 to 
65,675 tonnes. Aluminium 
stocks rose again as well, by 
&200 to 183,575 tonnes. 

A fall in nickel stocks.' of 420 
to 3.302 tonnes, kept prices up 
on fears of a supply squeeze. 
Zinc held steady, too. helped by 
a stocks fall of 325 to 62.250 
tonnes. 

LME silver holdings fell by 
520,000 to 31,020.000 ounces. But 
the cash price dipped below 400p 
for the' first time since mid- 
1379 closing at- 385.5p a troy 
ounce. The bullion fixing in 
the morning was S.40p lower at 
401 30p. 

Free market platinum fol- 
lowed the downward trend in 
gold and silver, lasing £6.10 to 
£178.80 a troy ounce. The dollar 
quotation was $13.25 down at 
S315.5 an ounce, its lowest level 
for nearly four years and well 
below the South African pro- 
ducer price of $475. 


More funds for rubber stock 


BY WONG 51/LONG IN KUALA LUMPUR 


THE International Natural 
Rubber Organization (INRO) is 
to call up a third round of 
financial . contributions from 
member countries to buy up 
surplus rubber. 

Inro -chairman, Mr Jack 
Sumner, indicated at the end of 
a special council session over 
the weekend that the call-up 
would be over $M200m 
(U.S.?124m) and bring total 
contributions since last .October 
to $M500m. 

Mr Sumner admitted that con- 
trary to earlier forecasts, the 
price of rubber had continued 
to remain depressed in spite of 
purchases by Inro's buffer stock 
amounting to over 100,000 
tonnes. 

• - “ it is the considered view 
of Hie council that an additional 
purchase of a substantial quan- 
tity will be required to meet 
effectively the objectives, of the 
international natural rubber 


agreement," he said. 

Unconfirmed market reports 
said that the council had appar- 
ently approved a proposal by 
Malaysia that the buffer stock 
manager be allowed to buy 
futures. 

He has so far been authorise d 
to buy only physical rubber but 
producers felt the Inro’s sup- 
port operation could be more 
effective if the manager has the 
discretion to buy futures as well. 

Mr Sumner said tiie council 
unanimously agreed the buffer 
stock manager "must employ 
all methods available in estab- 
lished rubber markets to impart 
real strength and confidence in 
the markets.” 

The meeting also agreed to 
the EEC's request for its ratifi- 
cation of the INRO agreement 
to be extended from February 
28 to April 15. 

A vote of 80 per cent from 
both the producers and con- 


sumers is needed for the agree- 
ment to come into full force. 
Mr Sumner said Thailand has 
notified - that it would ratify by 
April 15. and similar pledges 
had been- received from some 
consuming members. 

Tbe producers, led by 
Malaysia, wbo want an increase 
in the buffer stock price range, 
acceded to built-in clauses in 
the agreement precluding any 
upward revision at this time. 

Tan Sri B. C. Sekhar, head 
of the Malaysian delegation, said 
that Malaysia had not riianged 
Its position on the desirability 
of changing the price levels, but 
there was a question of priority. 
; James Todd, head of the U-S. 
delegation, stressing the 
American commitment to the 
agreement, said the U.S. is 
ready to meet the contribution 
for the third call-up. “ 1 think 
there is a great deal of con- 
fidence in the agreement," he 
said: 


Speculators 
boost coffee 
market 

By Onr Commodities Staff 

A NEW wave of speculative 
buying boosted London coffee 
futures prices to the highest 
levels for 21 months yester- 
day. The May quotation 
reached £1,365 a tonne at one 
stage before ending the day 
£30 up at £L353.5 st tonne. 

Dealers said there were no 
new -fundamental- develop- 
ments to explain the rise, 
which they .attributed to a 
continuing shortage of sup- 
plies available for nearby 
delivery coupled with wide- 
spread switching of specula- 
tive activity from other 
markets. In spite of tbe 
strength of the market, trad- 
ing was fairly light, they 
noted. 

Late last mouth rising 
prices triggered the release 
of an extra 672,000 hags (60 
kilos each) of coffee export 
quotas for the 1981/82 season 
under the International 
Coffee Agreement. But this 
seems to have had little effect 
on market sentiment. 

If the market continues to 
rise further, quota releases 
will follow. But there is some 
way to go before the next 
trigger level of 14ft cents a lb 
Is reached and this will have 
to he maintained for 15 days 
before the next tranche, of lro 
bags Is released. If that level 
is held for a further 33 days 
another lm hags will he made 
available to the market. 


Higher Cuban 
sugar output 
forecast 

By Our Commodities; Staff 
A FORECAST of higher Cohan 
output encouraged • another 
sharp decline in world sugar 
values on the London, futures 
market yesterday. The August 
position ended the day £4.75 
down at £159.45 a tonne after 
the London daily raw sugar 
price was fixed £3 lower at £152 
a tonne in the morning. 

In his latest International 
Sugar report, published yester- 
day. F. O. Licht, the West 
German sugar analyst, said 
Havana officials had predicted 
this year’s Cuban output at 7.6m 
to 7.8m tonnes, up from 7.4m 
last season. They added, how- 
ever, that much would depend 
on the efficiency with which the 
dosing stages of the harvest 
were conducted. 


SOUTH AFRICAN MAIZE 


Fanners get tough 
on export policy 


BT BERNARD SIMON IN JOHANNESBURG 


THE SOUTH African govern- 
ment has been drawn into a 
bitter dispute over efforts by 
the country’s maize fanners to 
make sweeping changes in 
maize export policies. * 

The Department of Agricul- 
ture says it is looking at the 
application of the whole system 
of selling maize. This follows 
persistent rumours of a clash 
between the authorities and the 
farmers who control the Maize 
Board (the parastatal body 
which has day-to-day responsi- 
bility for the maize industry). 

South Africa is the world’s 
third largest maize exporter. 
Shipments totalled 5.3m tonnes 
last year and are expected tn 
come close to that len»l in IJW2. 
in spile of an anticipated fall 
in the ernp from 14.2m tnnnes 
tn less than 30m tonnes. The 
maize industry is also the 
country's mast important farm- 
ing sector. 

The present dispute has its 
origins in the election last year 
of a new Maize Board domi- 
nated by members of the 
National Maize Producers 
Organisation (Nampo), a group 
of hard-driving fanners who 
believe that previous boards 
have sold maize farmers short. 

The new board is turning the 
industry upside down, doing its 
best to sweep aside many tradi- 
tional rules not only of maize 
marketing but also broadpr 
government policies such as 
official encouragement of 
import substitution. 


Hedging 


Boasting that “we’re wheel- 
ing and dealing on a scale that 
is unknown in South Africa,” 
one Nampo official concedes 
that “the government is not 
happy.” 

One of the board's first steps 
was to start hedging part of the 
maize crop on futres -markets. 
It unexpectedly closed a for- 
ward contract before maturity, 
realising a windfall profit of 
R1.3m. 

. More recently, the board has 
made revolutionary changes in 


BRITISH COMMODITY MARKETS 

BASE METALS 


Baee-Matil prims c*m* under haavy 
Bailing pressure an th» London Mata! 
Exchange, reflecting tha aharp loaaaaJn 
oneloua mania. Copper cloud at ttia. 
day'a low of £845. Load droppad to 
£343. after a low o f ■ P«0, and 
Aluminium waa finally C584.3. Tine 
was auauinerf by good demand for 
cash metal. Nickel waa boosted by the 
stocks decline and apeculathro buying 
Interact which left thru mtmtha at 
£3115. Thi clnaad at 272S6, with row- 
ing following tha etoeka. increase ~ 
ona of the. biggest ever — aflut by 
rumoured -buying by the Buffer Stock 
Manager. 


ALUMINIUM— Morning: Three month* 
E5B&.00. 35.50. 86.00. 95.50. 95.00. 96.00, 
95.50. Kerbs: Throe month* £595.00, 
94.00, 94.50. 94.00. 93.50. Afternoon: 
Cash £572.60. three monthe £593.50. 

94.00, 95.00, 94.50. Kerbs; Three 
months £584.00. 93.50, S4.0G. 85.00. 

94.00. 94.50, 94.00, 93.60, 94.00. Turn- 
over: 11.575 tonnes. 


... ng: Caah 

three monthe £453.00. 54-00, 


ZINC — Morning: Cash £451-00, 49.00. 



Three 
Aftar- 
50.50. 
Kerbs: 
*7.50, 


63.00. 52.50. 52.00. Kerbs: 
months £451.00. 5150. 51.00. 
noon: Three . months £451.00, 

48.00. 49.00, 50.00, 49.00, 48.50. 
Three month* £449.00, 48,00. 

47.00. Turnover 18.275 tonnea 


TIN Official j 


a.m. •+ on p.m, 

il i — lUnoffldeil — 



OOPPIR 

a.m. 

Official 

|+ or 

p.m. 

Unuffioid 

+ or 

• •• 


£ 

£ 

£ 

£ 

• .'| H f 

ir. 

HlghOrde 

Oa*|i.- 

' 8 mtha 
Battle m’t 
Csthodot* 

Cash 

5 month* 
Settlam't 
U.S. ProdJ 

8S7-8 

8B6-JI 

898 

888.5-4 
851-3 ! 
B34 

-18 

-nil 

-16 

-174 

ar 

831-8 

849.5-5 

819^-3.5 
B47.ft8.ff | 

-*76.fi-S2 ! 

-;ii‘ 

-17 

-IB 


High Grade £ ' £ i £ } £ 

G (tab 7015-20 ‘-IB; 70*0-40 +26 

3 montna! 7935-30 -AS . 7860-70 1+62.6 

Settle m't] 702WS-15, - 

7015-20^ i_ 16 17030*0 1+36 
S month*! 7235-30 '-46 ! 7360-70 pU 

Settlem'ti 7020 j-15 . - 

Strait* Ej S 830 .35 j-OJW, - 

TIN— Morning: Standard, caah £7010, 
three monthe £7232, 20, 15, 20, 25, M. 
Kerbs standard. Three month* £7240, 
50. 60. Attar noon: Standard, caah 
£7010. 20. 30. three monthe £7245. 
7230. .40. BO, 60. Turnover: 1,296 
tnnnes. • 


NICKEL 

i a.m. j+or 
Official j — 

p.m. ' 
Unofficial 

+ or 

Spot - 

5 month* 

1318540 1+«, 
813540 | + 60 | 

3100-5 , 
311Q-20 

[+45 

-naji 

i 


Certain Middle Eastern Qualities were 
In request, but the cell for South 
American style* waa not as persis- 
tant aa recently. 

GAS OIL FUTURES 

■ . The market opened around S2.0 
lower before a toadying on short-lived 
nervousness. A weaker New. York 
opening fuelled e further fail before 
8 h on- coveting lifted price* off the lows 
on the dose, rations Premier Man. 


SOYABEAN MEAL PRICE CHANGES 


The market opened elighlly steadier 
on weaker sterling and tradod in a 
narrow ranqo throughout the day to 
close around opening levels, reports 
T. G. Roddick. 


In tonne* unless otherwise stated. 


NICKEL— Morning: Cash £3140. 25, 
three months £3150. 40. 60. 45. 40, 35. 
40. KerbB: Three month* £3140. After- 
noon: Three months £3110. 20. Turn- 
over: 1.314 loanee. 

* Cents per pound- 4 MS per kilo, 
t On previous unofficial closa. 


SILVER 


Amalgamated Metal Trading raportarf 
that In the morning three month* Higher 
-Grade traded at £859.00, 58. H), 58.00. 
57.5ft. 57.00. 58.50. 68.00. Cathodes, 
cash £823.00. 24.00. three monthe. 
£552.00. Kerbe: Higher Grade, ttiree 

months £855.00. 54.0ft 53.0ft 52X0. 

SUX). 52.00. 53.0ft 54.0ft &Wft 54-00, 
83.50. Aftemeon: Higher Grade, three 
monthe £880X10. 60.60. 51^00. 51. 50, 

52.00. 51.5ft BIBO... 50.50. 50.00. 

Cathodes, three month* £8*7.00. *8.00. 
Kerbs; Higher Grade, three montit* 
EMftOO. 48.00. 47.6ft 47.00. 48.00. 45.00. 
Turnover: 27.775 tonnes. 


■ 



p.m. | 

+ or 

LEAD | 

orneial 

j+ or 

Unofficial 

— 


£ 

545-6 

1 £ 

£ 

339-30 

[ £ 

1 — ao 


355 


339-40 

|-17J 

SettlenTti 
U4L Spot- 

' 346 

h 4 

1 *38 

i :::::: 


LEAD— Morning: Cash £347.00, 48.00. 
three monthe £358.00. B7.5D, 58.0ft 

55.00. Kerbs: Three month* £355410, 

54.00. 53.5ft 54.00. 53.00. Afternoon: 
Three month* £348.00. 48.00, 48.50, 

48.00. 46.00. 45X0. 43.00. 44.0ft 43.00. 

42.00. 41.00. 33.00. 4000. 41.0ft 40.00. 
Kerbs: Three months £340.00, 42.00. 

44.0. 43.0. 42.00, 43.00. Turnover: 
. Turnover: 22.600 tonne*. 


Silver was fixed B.4p an ounce 
lower for spot delivery in tho London 
bullion market yesterday at 401 Jo. 
U.S. cant equivalents of the fixing 
levels were: spat 734c. down - 2Dc; 
Ihrae-month 759.4c, down 19.8c; six- 
month 784.6c. down 20.1c: and 12- 
month 837.7c. down 17 .8c. Tha metal 
opened at 393-4Q3 p (7 32-737c) -and 
dosed st 387-391 P (708- 713c). 


Month 

fast ’day* 
close 

■For 

Business 

Done 


S U.S. 
per tonne 
247.00 

+ 140 
-2ja 

248.flft42.D0 

April 

335.85 

May 

233.00 

-4ja7s«J6.2a.7b 

-5.»|2ffS4fi2fi.M 

June. 

230.50 

Auguat 

851.00 
235.50 

238.00 

— 630l234.0D-28.7B 
-6jOt25B.Oft51.00 
— 7JM740.IM-M.00 
— 6JW|?46JJ0-58JKJ 


Nqv 

240 J)0 

-6.Mi241.00 



Yeaterdy*;+ or 
Cioee ( — 

Bualiieu 

Done 

April.. 

£ ■ j 

per tonne, 
127.4047.6 —0.30 
12fi ^0-274.-0.50 
127.0047.5 -0.16 
1 28 J) 0-28A -O.M 
150.60-51.5 —0.78 

127.60 ‘ 

June 

August. 

October...,. 

127 ,2ft 27.110 
127J68-27.M 
- 

Feb 

161.00-54.0, — 0.60, — 

April 

156-00-56.0! - 

- 


Mur. 9 s' + o r 

1983 - — 


Month 

ago 


Sales: 38 (334} lots of 10 tonnea. 


SUGAR 


Sales: 3.737 (3>Ul) lota of 100 tannM. 


GRAINS 


The market opened unchanged and 
remained puiatfv steady. Shipper buy- 
ing pushed old crops higher. New 
ctopa ware more active than recently 
Ba buyers returned. Acli reports. 


LONDON DAILY PRICE— Paw sugar 
£152.00 (£155.00} s tonne oil March- 
April shipment, White auger dally 
phea £164.00 (£167.50). 

AM positions touched new lifa-of- 
contrect lows fcl/owfng reports from 
Cuba that the currant campaign would 
reach 7. 6-7. 8m tone, reports 

C. Caarnlkow. 


SILVER 

par 

troy oft | 

Bullion 
fixing 
prioe . 

+ Of) 1-M.EL 
— pjn. . 
[ Unoffic’l 

+ or 

Spot....... 

5 months. 

6 month*. 
13 months 

401 JOp 
43 4.25 p 
436.60p 
453. 20 p 

—8.401 385^p 
~8.2sp«L25p, 

4S - 1 

-aw 

-28.fi 


Alumlnm 

e.m. 

Official 

+ or 

e.m. 

Unofficial 

+ Of 

8 pet ....... 

3 monthi 

£ 

578-3 

CBft.8 

£ 

-4 

-S 

8 

1 B73-.6 
8S4-.5 

£ 

—4.26 

-4.26 


ZINC 

a.m. 

Official 

ft” 

- p.m. j-r or 
Unofflalal] — 

caah 

3 month* 
S’m«nt~. 
PrlmWt* 

£ I £ 
448-J3 :+fl.75 

462.5 1+2 

449.6 j+5.6 

£ £ 
444-5 4-1.6 
448-9 j-1.7B 

-42.764.78 



KRUGERRANDS 
SOVEREIGNS 

Other Gold Coins 
Bought & Sold 

Venus Coins Limited 

75 Duka Street, Oremreiwr Square 
■ London W1MW 
Tel: 01 -529 3301 » TaJax: 291211 


Promotional Gifts 


• Key Ring? 
OFapemjgbte 

• Cufflinks 

• Badges etc 
EaquWeion 
company tetter 


heading plan” 
for free design 



for free i_ „ 
and quotation. 

Kma/Utanlbr: _ _ 

Manhattan AVindsor 

STEWARD 5T-, BIRMINGHAM BI8 7AF 
TEL: 031-454 «« TELEX: 338633 


PERSONAL 


f ■ 

, f'.yj f 


FACT 

THE DAILY INJECTION 
of toulin is, for many, 
the only way to stay alive. 

They have 

DIABETES 

Join us — Help us 
Support us 

THE BRITISH DIABETIC 
ASSOCIATION 
18 Qiieen Anne Street 
.London W1M OBD 


IN LIVING 
MEMORY 

Floral trlhutes fode. Your regard for 
* dap* read frf*nd live* on If you 
make ■ donation in tiialr name to 
Help the Aged's work —■ toward* a 
Day Centre for the lonjrty. 
trMbtiant of research for the old, 
oTholp for the hnusebound. Evav 
£ achieves s great deal for the old. 
Please let u» know, the n*fll* you 
wish to oommamonrte, . ; 

Sand to: 

Room f T1 gS‘'SA3AP Str>rt 

London W1A ZAP 


PUBLIC NOTICES 


anpni. £Sra. Outstand- 
ing PMO-OaO. 


10.000 o*. Morning: cash 3J9.5; three 
month* 41fi.ft 14.5, 14.2, 13J, 12J5. 
12.2. 12-0- . Kerb: three months Alt JJ, 
IIS. 11.0,. 10.0. Afternoon: three 
months 403.5. 03.0. 03.2, 03 A 3800. 
98.5. 99.0. 98X1. 98.5. Kerb: three 
months 399.0. 99.0, 97.ft 96.0, 940. 
95.0. 940. 920. 

COCOA 

The market traded £8 lower fit a 
thin nervous opening oaH before deafer 
buying end oomirossion houss ahert- 
covwrng pushed price* higher. Con- 
sumers proved re be more witting 
buyer* of physical cocos. Jobber 
profit-taking pared the gains towards 
the cioee. reported Gill and Duff us. 


WHEAT 


BARLEY 


Yotterd'y* 

+or 

Yest'rd'ya 

+or 

Mnth 

clou 


cUoso 


Mar. 

112.15 

+0.16 

107.00 

+ 025 

May.. 

115.85 

+ 026 

110,75 

+ 0.1D 

July- 

119,60 

+040 

_ 

— 

Sept. 

106.75' 

-0.06 

102,45 

+ 0.10 

Npv_. 

110.46 

+0 JH 

10640 

+ 0.15 

Jan — 

114J5 

+0.10 

110.20 

+ 0.20 


No. 4 iYesterday 

Previous S 

Builneu 

Con- olooe < 


done 

tract j 




Zinc Cash *444.8 +1.8 ;£44S.C 

S mtha -.5448.5 PlXCAW.I 

Producer*. ...!W00 | I5S7UK 


May — 

Aus «... 

Oot 

Jan. — 
March 
M*y..„ 
Aug — I 


COCOA 

Yes'nfay's 

dose 

+ or 

BUfiinau 

Done 

March 

1195-98 

+6.0 

11 97-87 

May 

1160-61 

+ 5.0 

1164^47 

July 

1178-80 

+4.5 

U8ft65 


1190-91 

+ 1.0 

1J95-BS 

Dec 

1208- OB 

+2JJ 

1312-00 


122840 

+4J) 

1250.39 

May 

1238-42 

+ 1.5 

— 


Seles: 1.638 (2.500) lots of 10 tonne*. 
ICCO— DaHy pnea fob March 8: 94.09 
(94.22). imticemr price for March 9: 
83.30 (93.00?. 


COFFEE 


Short- covering saw spot March 
widening its premium against -other 
position* reflecting continued tightness 
of nearby*, reports Drexel Burnham 
Lombart. Brash contract highs were 
established as the a Ire moon rally 


HGCA— • Looeti onei ex-farm soot- prices. 
Other milling wheat: Eastern 112.50. 
Feed bar] ay: Eastern 106.70, E. Mid*. 
107. fft N. East 107.90. The UK Mone- 
tary Coefficient for the week beginning 
Monday March 15 1982 (based on 
HGCA calcufetion* using four days 
exchange rare*) fa ex peered to remain 
unchanged - 

Business done— Wheat: March 112 . 10 - 
112.05, May 115.90-115.60. July 119.55- 
11340. Sept 106.75 only, Nov 110.35 
only, Jan 114.25 only. Selaa: 152 lots 
of 100 tonnes. Barley: March 107.05- 
107,00, May 110.75-110.60, Sept *02.45- 
10235. Nov 106 .25-108.1 5. Jan 110.10 
only. Sales: 76 lot* of 100 tennes. 

LONDON GRAINS— Wheat: U.S. Dark 
Northern' Soring No. t T4 per cent April 
109.75. May 109.25 trana shipment East 
Coast seller. U.S. Hard Winter 13 s * 
par cent March 115.50 trane shipment 
East Coast quoted. English Feed fob 
716.00 Eaat Coast seller.' Maize: French 
. first halt March 131.50 trana shipment 
East Coast sellar. South Africa White 
option Yellow Aprlf/M«y 78.00 sellar. 
Barley: English Feed fob March 112 
East Coast seller. Rest unquoted. 

RUBBER 

The London bhyslwl market opened 
about , .unchanged, attracted good 
interest throughout the day and closed 
Steadier. Lewig and. Pent recorded e 
March' fob. price lor Ho. 1 FKS In Kuala 
Lumpur of 2035 (200.0) cants a kfl 
and SMR 20 182.0 (1805). . 

. ^ j 

No. 1 Yaet'r’ya Previous Bust no at 
R£.s. ! dose eloae . Dona 


£ per tonne 

.llM.TUEJBIIBI.BBfil.nilBI.EMS^O 
, ]B8.4tW8.B0llB4.16-6*-m 18S.W-MJ& 
, 1SM0-65.1OjlB7.BB-67.7E 

1B8.B0.6BJSj172.0B-7SJffi172.Bfi.B8.BQ 
t fl7150-72Jfl 175.B0.7BJW 175 3B-72.QD 
5ft 1785H-73-W 1 1 7B.2B " — 
_ (3,146) lots of 50 tonnes. 

Tare end Lyf* dHivery price for 
granuiared basis white sugar wee 
£374.00 (same) a tonne fob for home 
trade and £261.00 (£264.00) lor export. 

info matiofu/ Sugar Agreement (U.S. 
cants per pound) fob and stowed 
Caribbean port*. Prices for March 5: 

■ DaHy price 11.87 (11.B2), 15-dsy 

average 12.67 (tf.75). 


Otis ( 

Coconut (Phil) 84B8.Bc 

Groundnut iSBBOz 

Unaeed Crude z 
Palm Malayan lM07.fi 
Seeds l 

Copra Ph tip ... 8350z 
Soyabean (U-S.)l8855 
Grains 

BarleyFirt.Way 

Maize 

Wheat Fut.Msy 


Other I 

commodities^ 

Cocoa ahfpVjMlBfl 
Future MayjSL 160.& 
Coffee Ft' MayJ21553.fi 
Cotton A.lndex 
Gas Off Apr. — 


[70.050 


Rubber (kllo)7.. 48.5p 1*0.6 47.! 

WOOL FUTURES WaSt 1 MM* ki . |3B0 p kltoiZ^...ini 


+5 

5 

1+30 

+ 0.1 


COFFEE 

Yesterday's 

Clow 


Butfnero 

Done 


e-par tonnel 


1502-05 

+48^,1518.70 


1353-54 

+30.0 

136541 


1280-81. 

+21Ji[lSB540 

Sept 

Nov» 

January 

March---. 

124042 
1227-35 
. 121040 
1125-25 

+21.01125644 
+36, sl 1222 
+25.5 — 

+23.5| - 


April ...' 

May 

ApWno ; 
Jly-Septj 
Oct- Dec 
Jin-Mar 
Apt -Jnei 
Jly-Septj 
Oct-Deci 


49.00- 51. OD! 

69.00- 58 JO 
60.70.50.8D| 
54^0-54.80; 
57,20-57.501 

BQJO-W.r 

S2.7ftB2,5 

FS.50-56.7af 

EB.5fi-6S.S0 


48. BO-49. Mi - 

43.50-SB,50! — 

49.7049 JM)' M.6UB8JJ0 
83.604i5.7Dl 54.6D-5 * M 
66.7046 M 57.Sfifi6.J0 
5S.6fi6SJffi] 80.M4flJ!fl 
B2.4042.M 62,88.62.60 
fi5.00-ra.Z0 S6J04S.79 
673-0740! - 


BRADFORD— Deffvoriaa are going out 
well but the flow of new business is 
not satisfactory- Traders said chances 
of Pissing- on recent higher wool c ns re- 
ars remote and although combing 
machinery ra busy some other aecrere ' 
have shown no general improvement. 
WOOL — 

SYDNEY GREASY WOOL— Closa (in 
order: buyer, sailer, business). Austra- 
lian cents par kilo. March 519-ft 522.0.- 
522 0-51 B.B.- May 525.0. 525.5. 526.0- 
524.5: July 530.5, 531.5. 632 0-531 0; 
Oct 524ft 526.0. 525.0-523.5: Dec 528.0. 
530.0, 529.0-528.0: March 535.0, 63711, 
5?£,0: May 639.0, 540.0. 539.0.' July 
545. ft. 546.0. 546 ft64fi 0 Snles: 1B3. 

LONDON NEW ZEALAND CROSS- 
BREDS— Close (in order: buyer, sellar.' 
bustnaaa). New Zealand cants oar kg. 
March. 4CD, *11, nil; May 41G..422, nil: 
Aug 429, 434, 431-429: Oct 432, 439, 
434-429: Dec 432. 435. nil; Jan 433, 
438, 431-430: March 442, 448. 446^40; 
May 452. 4R5, 450-447; Aug 400, 464, 
461-455. Sales: 83. 

TEA AUCTION 

TEA AUCTIONS 

LONDON TEA AUCTIONS — 35.033 
packages wore offered tn yesterday's 
auction. Assam* landed Inwar. except 
selected bra tens and' dusts. African# 
shad 1-3p except dusts, which were 
often dearer. Ceylon* showed little 
change but plainer BOP's wore easier. 
Quotation*: Quality 120p per kik> 
(1Z4p). medium 71 Id par klfo (Hip), 
plain no quotation (no quotation). 


the twice-weekly tender system 
used to sell maize for export. In 
terms of this system, a pre- 
determined number of cargoes 
is sold to the highest bidder at 
a secret tender. 

Last November, the board 
began refusing tender offers. 
The board’s chairman, Mr Craw- 
ford van .Abn, telephflnrd 
officials fmm Chicago inst Hid- 
ing them to withdraw cargoes 
from the lender, after prices 
offered by the international 
trading houses were considered 
too low. 

Since then, bids for a lotal 
of 32 carhops, some 450.000 
tonnes, have hcen turner! down. 

Inetend. thr hnarri has begun 
negotiating a ns.il/e-for-ferliliscr 
harier deal with Romania, and 
has indicalc'l lhal it will deal 
directly with any buyer who 
approaches it. 

“Nampo deals wiih anyhmly. 
Wc warn tn rpp the nwnry go 
into the farmers' pnrkeis." says 
one nf "Mr van Abo's colleagues. 
He claims that the organisation, 
hasod in the liny Orange Free 
State hamlet of Bnthaville. has 
alrrady had di*ru*simis with 
traders in Switzerland. Japan 
and the U.S., as well as wiih 
Iron Curtain and Mack African 
governments. “ People are com- 
ing fmm al) over the world In 
this one-horse town." he says. 

The international trading 
houses with offices in Snuth 
Africa are not amused. They are 
convinced that the bnard's 
tactics are harming Smith 
Africa's reputation as a regular 
and dependable supplier, anil 
have asked to meet the Minister 
of Agriculture to discuss their 
grievances. 

The chairman of the grain 
and produce shippers associa- 
tion, Mr Tony Ferreira who 
also represents the French- 
owned trading company Dreyfus 
in Johannesburg, says that “we 
can no longer service markets 
efficiently, because we don't 
know whether the board will 
sell the maize or not.” 

According to other traders. 
Japanese manufacturers of 
animal feed— among the largest 
buyers of South African maize 
— are particularly worried. 


Taiwan recently signed a 
contract with the 3faire Board .■ 
for the supply of I.Sm tonnes i 
of maize over the next threfl 
years, but the Taiwanese are 
understood to have refused a - 
board request to increase the . 
contractual quantities, 

One result of the disruption 
in supplies, the traders say, 
may be to narrow the premium ■ 
which foreign customers are 
willing to pay for high-quality 1 
South African maL-e. Prices 
arc currently around -SI 2 tn 513 
a tonne above those for U.S. 
maize. 

According to Mr Ferreira, 

“ Some shippers have turned i 
away business for South African 
maize.” 

The N’ampo men, who have 
eicht of the 12 scat^ on the 
Maize Board, are undeterred by 
the criticism. They are In- 
creasingly by-passing other 
hoard member; and ' have 
pushed through a rrsohifion giv- 
ing thp hoard authority to usb 
methods other than the tender 
system in sril maize. Tlte res*>- ' 
lution still requires approval by : 
the Minister of Agriculture. 1 

New facilities 

As part of Its efforts to in- 
crease exporl s. N.impn is press- » 
ing ihr governmenf tn expand [ 
the liarhnur at Richards Bay, ' 
• north nr Durban: at present 
almost nil Smith Africa's mafan 
is shipped through East London, 
wiiich is f.irlher than Richards 
Bay from the main maize grow- ] 
ing areas. Nampro argues that . 
facilities at Richards Bay would 
have allowed a virtual doubling 
of exports Inst year. 

Nampo is also toying with the 
idea nf importing tractors from 
Italy and Romania at a lower 
cost than locally assembled 
items. It concedes, however, 
that the authorities may not be 
keen to approve Import permits. 

The government is watching 
the developments anxiously. 
"If there should be a change, 
tbe Minister must approve." The 
Department of Agriculture 
official says, "The Maize board 
cannot go it alone." 


AMERICAN MARKETS 


( ( : 

Metals 1 | i 

Aluminium )£B10iBl5 £B10i8l6 

Free Mkt SlOMMOfifi'-lO |SI110/14D 

Copper i 

Cash h grade... 8821.5 lBJfi£8fia.5 

3 mth*..., 8849.75 —18 <£B90^5 

Cash Catlrode..|CB90 -17 l£B55 

3 mth* ?E84« ,-16 £687.5 

Gold troy oz .... 1*326.5 1-16.76,8378.75 

Lead Cash *399.5 -20 £350.5 

3nrthfc. j£359.5 :-17.7B.£340^5 

Nfckof - Ssas4 ; jxnij 

Frea mkt '260(2»e|_ <2(KU90a 

Platln'mtr oz'ylcsfiO j IfZBO 

FroomW..;.- £172.80 '-5.1 £197.20 
Quielestivort 1 390^400 +1 *370(690 

Stiver troy oz... 401.30 p -8.4fil455.90p 


7Tn Cash (£7035 -+25 :£B03S 

3 mtha (£7265 +H.5«7985 

TungStsn22.Blblfil30.DO | 6128^4 

Wolf rm 22.4nt>s] 8 1 17/122 1-2 iSISSrififl 
" £448.5 
.7B 

.188767 BW 


1-2.5 18550 
l-BJS 18715 

j-.‘“ JS530 

! i 

'8550 

l 15262.75 

l ! 

J 110.75 t+o.itreno.80 

131.50 £133.75 

113.85 ! + 0.28X1 13.15 
115.50 !-l f£117J30 


NEW YORK, MbfcIi 8. 

Precious metab dsclinsd sharply on 
indicilians of continua'd long liquida- 
tion and copper followed suit. Bearish 
psychology a Hoc tad all arsine and 
soysbaans with' lata short covnrmg 
taking ihs markets off their lows. Heat- 
ing oil was under enormous pressure 
bs rumoured cutbacks in oil output 
were not considered sufficient. Coffee 
remained Strong an (fie frede was con- 
cerned about tight supplies. Cocoa 
traded lower on evidsncn of producer 
selling , In the markst. reported 
Hemofrf. 

Copper — March BS. 30-58. 35 (57.70). 
April 67 00 (58 40). May 07.85-68 DO. 
July 59.60-89.75. Sept 71.30-71 40. Dae 
73.75. , Jan 74 55. March 75.05. May 
77.55, July 79 05. Sept- 80.00. Dec 
82.90. Jin, 83.60. 

Potatoes (round vriiirw) — April RO 4- 
80 8 (80.3). Nov 76.5-78.5 (78.0). 
March 87.5-89.0. Sales: 414.' 

TSifver — March 7M.0 (730.0), April 
707.5 (737.0). May 715.0-717.5. July 
732 .0-735 J). Sept 754.0. Dec 774.0. 
Jan 790.0, Marrh 801.5, Mav 818 5. July 
835.5. Sam SS3 5, Do c 878 0. Jan 886.5. 
Handy and Herman bullion apoi: 690.00 
(751.50). 

Sugar— No. 11: May 1141-11.43 
(11 91). July 11.56-11.57 (12.00J. Rspt 
11.77. Oct 11.90-11.91. Jan 12 00. March 
12 50. May 12.71. July 12.30-13.00. 
Sales: 9.025. 

Tfn— 610.00-615 00 (010 00-518.00) . 

CHICAGO. March 8. 

lard— Chicago loose 20.25. 

Uv» Cattle—. Anri I 68.B5-68 » (67.4m. 
June 65 02-65 10 (65.70). Au»j 63.00- 
62.10, Oci 59.75-59.80. Doc 50.30, Feb 


60 25. Aprif 6050. 

Live Hog* — April 48 80-48.60 (47.82L 
-font 53.00-52.85 (52.40), Jiitv 53.70- 
53 50. Aug 52.35-52 30. Oct 48.4049.30. 
Dec 43.65-49.90. Fab 50 55. June 51 00. 

ttMalze— March 257V258 (SSL). 
May 268-208', (270%), July 276-275*. 
Sept 278. Doc 282VZB2’t. March 29B- 
296V 

Pork Belli** — Marrh 72.70-73.0Q 
(7! 401. May 73.70-7t.00 (72.47J. July 
73.25-73.60. Auq 71 05-70 87. Feb 71.30. 
71 25. Mmr.h 71 57. 

tSoysbeans— Mnrch 600V60P\ (6081. 
May 611- SI U, (618 l i). July 623-622. 
August 626. Sept 637, Nov 63 1-63 IV 
Jan 643’i. March 658*7. 

IfSoyabean Meal — Mnrrh 180 5 
(1H1 5). May 181.5-161.3 (183 2). July 
1W.2-1B4 0. Aunusi 185 5-185 2. Sapl 
185.5. Oct 186 3, Dec 188.2, Jan 

189.0. 

Soyabean Oil— March IT 82-17.85 
(18 nr). May 18 33-1B.36 (18.58). July 
2® 25- A “nu»t T9dO. Sept 19.15, Oct 
19.30. Pnc 18.60-19 65. Jan 19.80 
March 20 06. ' 

IWheat— March 351-350 >t (333V) 

May 359J,-359 , I (363 1 .-). Jufy 368»*-3a^ 
Snot 38ZI1-382, Dec 401-400%, March 
417. 

, WINNIPER. March 8. 

{Barley — March 120.P0 (121 10) 

May 123 50 (174.90). July 126 9ft 

127.00. Oct 129 40. Dec 130.90. 

All cents par pound ox-werehauae 
unless othcrwisa stated. •* per troy 
ounce. 5 Cents pnr troy ounce. 
It Cents per SB-lb huehel. t Centa 

bushel. US per short tow 
12.001 lb). § SCan. per metuc ton. 
«$ per 1.000 sq ft. t Cenrs par 
ooien. ttS par metric ton. 


EUROPEAN MARKETS 


ICO indlartur pries* for March fi: 
(U-S. cents per pound) t Comp, doif/ 
1970 135.12 (13441):- 15-day overegfr 
135.35 (13SJ0). 

COTTON 

LIVERFOOL— 5npt Wd . shipment 
sale* 'amounted to 77 tohnas. Deal- 
ing* did not dovalop with *i»y fre- 
quoney. but a few transactions wars 
arranged in apecioliat growih*. 


Setae: 67E (493) lots of 15 tonnes. 
Ml (9) lot s of 5 torn**- 

Phywwl cfosinq prieoe ( buyers) 
were: Spot 4850p (48-OOq); Aorff 
51 -OOP (50.25p): May 51.00p (50.25p). 

JUTE 

JUTE — C and F Dundee BWC £284, 
BWD £237, BT0 £326. BTC £288, BTD 
C23B: Anrwarp C an d F BWC £286, 
BWD £239. BTB E3Z9, BTC £288, BTD 
£241: Dundee March 4Q in, ID K- 
£10.17 40 In. 74 oz- EB-08. . B T.wfll» 
,£30.13. 


POTATOES 


LONDON ’POTATO FUTURES — A 
Stronger physical pdea, and higher - 
Dutch futures,, encouraged buyers beck 
in ths April position which rote lo 
ihe high in early trade, and closed 
steady altar a dip, reports Cd*y and 
Harper. Closing prices: Apni 148.40. 
+ 4 10, (high 148.50, low 146.50): Nov 
67.10, ■+ 20.3ft (high '07.20. low 67.10); 
Feb 77.50, unchangad, - (un traded). 
Turnover: ESS (566); lots of 40 tonnes. 
* 

GRIMSBY FISH* Supply good, 
demand good.. Prices at ship's aids 


£1840 
(£1169.5 
[£1811.5 

1 70.4 5c 

'S23AJ5 \-9A [F874.7S 
" ‘ - ’ '7.5d 

1170 

ipMlo 

S Unquoted, v April. * Meroh-AprH. 
x May. y Aprit-Miy. u MayJune. t Par 
78 lb flssk. * Ghana cocoa, n Nominal. 
{ Softer. 

(unprocessed) oer slona: Shelf cad 
td. *0-54.80. codlings E3.00-MJO. large 
haddock C4.20-S.0D. medium C3W- 
Cft.80, email £2.20-£3.50. faro* Plaicw 
£4. DO, medium £3.50-0. BO, best small 
C3.60-C3.S0. 5kinned donfi»h' (medium) 
£3.00. Lemon solas (large) £15.00, 
(medium) £13.00. Gaithe £1.90. 

MEAT/ VEGETABLES 

- MEAT COMMISSION— Average Fat- 
stack prices at raprsaanntivw markka. 
GB— Csttie 10?46p per kg Iw (+0.02). 
UK— Sheep 206.73 d Per kg est daw 
(.4-1.52), GB— Figs 7S.25n par kg Iw 
(+0..78). 

SMITHFIELD — Pence per pound. Beef: 
Scotch killed sldse 855 lo 83.5; Ulster 
brndquamra 9S.0 to S9.0, forequarters 
66.0 to 70.0. Veal: Dutch hinds snd 
ends 120!0 to 127J5, Lamb 1 : English 
email 84.0 to 91.5. medium 85.D to 88.5, 
heavy 83.0 to 8S.0; Scotch heovv 80.0 
to 85.0: Imported — New Zealand PL 66.5 
to 67.5. PM 66.5 to 67.5. YU 65.0 to 
86.0. Pork: English, ondar 100 fb 45.5 
to Bftft 100-120 lb 43.0 to 56.0. IM.tfiO 
lb 41-0 fo 52.0. 

' COVENT GARDEN — Prices for the 
bulk- of produce, in netting per 
package except when ptherwies silted. 
Imported Produce: Orange*— Spams: 
'Navel* 43/130 4.6D-5.50; ' Cyprus: 

Valencia Late* 3.50-4.00; Jaffa: 
Sharooutl 60/188 .4.70-5.60: Moroeean: 
NsvslB 48/113 3.604.50. Mandarins— 
Spanfi: • 4.004.80. Kars* 4.80-5.20. 
Wltkings— Seen la: 4 RW.50. Lemon*— 
Cvprufc; 2.5041.00: SDenfa: 40/50 1.60- 
2 0ft Italian: 80/120 4.00-B.Pft-Jafla: IDS. 
a.80: U.S. 6.0ft Grapefruit— U-S-'- 
Ten** Ruby 6.50-7.00. Florida Ruby 8.09- 
8.9): Cyprus: Large .cartons 3.03-4.00, 
•meti cartons ' 2.50-3 2 ft Jaffa: 36/88 
3-50-A80. Ortytiqua— Jamaican: 64/I2B 
8 50-9 00. Appfos — French: Now crop. 
Golden Dsliclou* 2TUIb 3.00 3. Eft 40-lb 
B.00-8.00. Stark Crmiaon 40-1b 7 00-3 5ft 
20 - lb 3.40-4.E0, Granny, Smith 9.00- 


ROTTFRDAM. March B 
Wheat— (U.S.S oar mnnef: U.S. No. 

2 Dark Haiti Winter 17.5 per cant 
March 1-25 192. Marrh 30-ApnJ 15 197; 
U.S. No. 2 Rad Winter March 166. 
April 169: "U.S. No. 3 4mb«r Durum 
Aoril-May 183. May 183. June 182, 
July 184. Aim 1S5. Sapl 187. Ort 19ft 
Nov 193: U.S. No. 2 North am Spring 
14 per cant April 183. Mav 181.50. 
June 181. July 181. Aw .182, Sect 
182.5a Oct 186.50. Nov 187.50; Cana- 
dian Western Rad Soring Apnf-May 201 . 
. Maize— {U.S .S oer tonne): US. No. 

3 Com Yellow snoot 123 traded, spin 
132. (fleet 129. March 129. April 127. 
May 127. June 128, July-Sonr 128.50. 
On -Dec 130. Jon-Msrch 138.50 »ellnn. 

Soybeans — (U.SA par tnnna)- U.S. 
No. 2 Yellow Gutiports April 20.75. 
May 2SI. June- 252. July 253, Aug 


254.25. Sept 255. Oct 253. Nov 2S3. 
Dae 256.75. J«n 262-50. Fab 265.50. 
March 368 50 sellers. 

Soysmial~-(U S .S per ion ns) ; 44 p«r 
cent protein afloat 228 traded. ( float 
227 50. March 326. April 225 50. May 
225.50. Aonl-Rept 226. Nov-March 238 
Bfllleo: Brazil P+llam al'oat 233.25. 
March 233. Apnl 232. May 231.5ft 
Anri I -Sept 23350 ssUsre. 

PARIS, March' 8 

Coco*— (FCr par IPO lifos)- March 1 
1245_12f», May 12S3-1259, July 1280- 
1235. tiapf 13 H 0 . 1530 . Hpc 1530-1343. 
Match 1350-1360, May 1360-1370. Salas 
at call: oil. 

Sugar— (FFr par rennu): Mav 1775* 
1777. July 17R0-I71fi. Ain 1340-1845, 
Ort 1815-1825. Nov 1815-1825. Dec IMS- 
1R?i. March lfWo-1895. May 1915-1930. 
Salas er call: 7. 


INDICES 

FINANCIAL TIMES 


DOW JONES 


Mar. B JMar. 4 | 

Month agepraar aoe 

34340,24540 

251.38 1 258.58 

(BlIK Jot* 1. 1982- 100). 

MOODY'S 

War.6 IMar. 4 

Month ago[Yaar nao 

900.4 1 Ml.l 

1011,5 1 1125.8 


Dow i Mur, 
Jones 1 6 • 

Mar. 

4 

Month' Year 
ago | ago 

SPOt -124.71 
Futf* 129,99 

128.35 

151.45 

1 1 

?2 

-4 -4 


(Drown bar 81. 1831*100) 


(Base: Ooeambsr 31 1974 ■■ 100) 

REUTERS 

Mnr,B | Mar^O iM’nth ago pf ear ego 
158 8,71 1588.6 j 15g4.6'~|~mu.r 
(Beets SfDttmbir 18. 1691*100) 


10.80: Canadian: Had Dallcioui 9 5ft 
12.00: U 5.: Rad Dtfieioua 10.00-14.00. 
PUr»— Dutch: Com ten 14-lb. per trey 
400-4.20: S. African: Williams’ Ban 
Chretien 6.60-8 BO: Italian: Per pound 
Paa*acraBS*na 0.14-0.17. Psach pa — 5. 
African: 2-50-3.00. NSCt»r|pm— Chilean: 
8.Sft9 Oft S. African: 4.80-5.30. Ptume— 
S, African; per pound Sonqold 0.50- 
0.50, WIctson* 0.30-0.40, Harry Pick- 
•tone 0 .35-0.55. KffiMy 0.30-0.45. 
Grape»— -Chilean: Thompson 11-lb B.50: 
5/ African; Dah Ren Hannah 5.80. 
Alphenss ‘B.30. Waltham Cress 5.50: 
Brazilian; Italia 11 -lb 8.50: U.S.: Rad 
Emperor 0.45-0.50. 1 

- Strewbenrios — Israeli: 0.50; U 5.; *.00- 
1.1ft Spanish: 0.45-0-50, Melrm* — 
Colombian; Yellow 9.00-11-00, Green 
3 00-11.00; South African: White 9 GO- 
TO 00: Chilean: Graon f2.0ftld.0D. Pin*- 
apple* — ivpry . Coast: Each 0 35-1.00. 
Banana* — Columbian: Par pound 0.33- 
0.22. Avtreadee— Israeli! 3 20-4.50: 
Canary. 4.00-4.50: U.S.: 4,60-4.30; South 
African: 5,50. Mangee* — Kenyan : 8/18 


5.00- 5.50; Peruvian: 9,00, Dafoe— 
Tunisian: 3Q'a 0 45-0.50; U.S.: 0.4343.45 
Tomotwra— Canary: 3.60-4.60: Moroc 
can: 2.80-3.20, 

English Produce; Pntoton* — Per B5.lt 
White 2.80-3.40, Red 3.00-3.80. K1n| 
Edwards 5.404.20. Mushroom*.- p» 
lb. npen 0 JO-0.40, elnsad 0.5041.60 
Apple * P a r lb, Bremfey 0.13-026 
Cnx's 0.25-0^6. Peers — Per fb. Con 
ferenee 0.14-0.22. Comic* 0.2041.30 
Cabbages; Par 30-lb bag. Caltic/Jai 
King 200-300. Lettuce— Pnr 12, reuni 
1.50 2.00, Onion*— Per 55-lb 40/80 mm 

2.00- 2.60 Carrots— Par 25/23- lb 1.40 
2.00. Bnelroote— Per 28-lb. mum 

1.00- 1-20. long 1.50-1 80. SwedM— Pe 

nnt 0 8ft 1 . 00 . Sprouts— Par 20-lb 2,00 
3.P0, Rhubarb— Par 1b, 14-lb b«s 0.18 
0.22. . U*fc»— Per 10-tb 140 - 1 .« 
Pamnlpe— Par 7Sf2S-\\t 1.00-140 

Turnip*— Per 28/28-lb 1.00-1 4C 

Tomatoes— P*r lb 0/E 0.404X5C 

Cucumbers-. Par package ASn Jtrv] 
Calabrese— Per 9-lb 3.504.00, 





Companies and Markets 


LONDON STOCK EXCHANGE 


Financial: Times ■ Tnesdiy/^Tcii’^ 1982 

.RECENT ISSUES 


Lower interest rates remain all-powerful influence 
and send Gilts up for the sixth consecutive session 


Account Dealing Dates 
Option 

* First Declare- Last Account 
Dealings tions Dealings Day 
Mar I Mar 11 Mar 13 Mar S3 
Mar 15 Mar 25 Mar 26 Apr 5 
Mar 29 Apr 15 Apr 16 Apr 26 

• " New time ” dealings may taka 
place from 9jQ am two business days 
earlier. 

The ail-powerful influence on 
London stock markets yesterday 
was again the current trend 
towards lower Interest rates at 
home and abroad. Investment 
interest, which also benefited 
from hopes of favourable Eudgft 
proposals today, centred almost 
exclusively on Gilt-edged securi- 
ties and the ensuing fresh up- 
surge in the sector encouraged 
a better tone in equities, recently 
susceptible to Wall Street 
uncertainty. 

Widespread fresh demand for 
Gilts was triggered by high ex- 
pectations of UK base lending 
rate cuts this week allied to pre- 
dictions of U.S. Prime rate reduc- 
tions, the latter being confirmed 
■later in the day. A lower pound 
failed to douse enthusiasm and 
rises of a point were established 
before the Bank of England's 
holding operations in money 
markets yesterday prompted 
some profit-taking. 

The rises were eventually 
pared to around s', the partly- 
paid Exchequer 13 J per cent 
19S7 “A" closing that much 
higher at 58$, after 5S{J. and 
the longer-dater Exchequer 15 
per cent 1977 ending similarly 
dearer at 109i. The FT Govern- 
ment Securities index continued 
its strong run since mid- 
Janttary, when it stood at 61.92, 


to close 0.20 up on file day at 

68.56. 

Equities were overshadowed 
bv the concentration oF invest- 
ment activity in Gilts, but small 
selective demand again enabled 
most leading shares to cast aside 
worries about recent disappoint- 
ing U.S. equity market trends. 

Business was also inhibited by 
dealers' attempts to maintain 
■level book positions ahead of 
today's Budget. Illustrating the 
market's lethargy, the FT Indus- 
trial Ordinary share index 
managed to increase by about 
another point an opening rise 
of 3 points before closing a net 
3.4 up at 564.1. 

Discount Houses up 

Still drawing strength from a 
firm gilt-edged market and lie 
prospect of lower interest rates, 
Discount Houses made a firm 
showing. Clive were notable for 
a rise of 3 at 29p„ while Union 
gained 7 to 452p; the Kuwait 
Investment Office has increased 
its holding in the latter to 10.65 
per cent. The major clearing 
banks also continued firmly with 
Midland 'closing S hetter at 350p. 
Up 15 last week in response to 
the goad results. Provident 
Financial added 5 afresh to 130p. 
First National Finance Corpora- 
tion reflected hid hopes with a 
further improvement of l at 
41 ip, after 42lp. 

A rising sector of late on 
currency cn aside rat ions and 
stock shortage. Lloyds brokers 
made renewed progress in places. 
Composites drifted lower on lack 
of support. 

Awaiting today's Budget lead- 
ing Breweries attracted an 


[Shipping and Transport 


MAM 


FINANCIAL TIMES STOCK INDICES 


Government Secs.. .. 

Fixed Interest ! 

Industrial Ord- ; 

Gold Mines j 

Ord. Dlv. Yield 

Earnings, Yld.X (full J 

P/E Ratio inert (•) j 

Total bargains I 

Equity turnover £m.f 
Equity bargain s,—.. .! 


Mar. 

S 

Mar.' 

5 

Mar, 1 
4 

Mar. 

3 

Mar. 

2 ! 

Mar. 

2 { 

A 

year 

ago 

68.56 

1 

68. 3 6 1 

67.891 

67.42 

67.34J 

66.91 ! 

68.61 

68.051 

67.54. 

67.23: 

66.98 

66.96 1 

66.38 

70. SB 

564. L 1 

660.7! 

556.7, 

695.2 

657.B. 

660.8 

483.5 

216.01 

226.3 

231.5 1 

247.4 

254.Q 

252^ 

319.1 

5.67] 

fi.Bll 

6.65! 

5.661 

5.63 

6.70 

7.29 

10771 

10.341 

10.411 

10.43 

10.38 

10.51 

15.68 

12.541 

12.46. 

12.37| 

12.55i 

12.41 

12.251 

7.86 


24,604 23,830, 23,013; 23,8041 22,513: 24,025 
176.45 157.061 167.63j 140.31 107.031 107.57 
20,302: 21,028 20,2931.21,887! 18,5151 19.522 


10 am 563.7, 11 am 563.7. Noon 56J 8. 1 pm 564.6. 

2 pm 564.5. 3 pm 564.3. 

Basis 100 Govt. Secs. 16/10/26. Fixed Inc. 1928. Industrial Ord. 1/7/35. 
Gold Mines 12/9/56. $E Activity 1974. 

latest Index 01-246 8028. 

• Nil -11.29, 


HIGHS AND LOWS S.E. ACTIVITY 



ISinceCompliat’n 


High j Low 

■ i — Dally 

i 127.4 49.18 ,GI ” L52SS5S 



n«vt c__„ ; 70.61 | 60.17 i 127.4 49.18 

GOVt. MO*.... (2A . & j2) (26/JO/BJ), (9ljHib> J (3.1/73/ 

Fixed Int 72.01 ! 61.61 | 1B0/4 i 50.63 j Bargains" 

iZO/2/81) I'ZBitOfBh (90/11147)- (8/1/75) j Value- . .. 

Ind.Ord j 597.3 446.0 \ 697.5 I 49.4 


Bargains..; 238.7! 207.7 


131.5! 136.2 
356.6: 317.4 


i20/«/81) '26/10/811 J2B/11/47)- (Slt/7B) j Value-...; 356.6: 

597.3 446.0 j 697.5 I 49.4 SjJgAwjl*-! j 

(SDM/B1) ri4»1/8n !(M/4/B11 |(9BIBl40) | aifi Q \ 

429.0 216.0 j 558.9 | 43/5 Equities. ...'.'.'! I 


s^ 4ZB.U 816.0 658.9 45/5 /Equities. 

(1419/81) (S/S/B2) 1(22/0/80) (28/10/71)1 Bargains... 
1 I I VnliT«__ I 


1328 136.2 

302.2* 302.4 


evenly-ba lanced. If quiet busi- 
ness. Grand metropolitan added 
4 to 203p. while similar gains 
were noted for Boddingtons, 
lolp. Faux. 135p. and GreenaJI 
Whitley, lOSp. the last-mentioned 
also aided by a Press mention. 
Wines and Spirits were generally 
subdued, although Distillers 
came in for useful support and 
rose 3 to 173p. Interest was 
also maintained in H. P, Buimer, 
10 up at 348p. 

Building descriptions, particu- 
larly housebuilding issues, made 
a strong showing on interest rate 
optimism. Renewed demand 
lifted Barrett Developments 15 
to a 19S1-S2 peak of 277.p and 
George Wimpey 5 to lOSp: the 
former’s interim results are due 
on March 15. Countryside Pro 
perties put on 7 to a peak of 
124p, Wilson (Connolly) S to 
ISSp, and Wiggins Group 9 to 
105p, the last-named additionally 
bouyed by favourable Press com- 
ment. On the other hand, 
Gail iford shed 3 to 61p on dis- 
appointment with the interim 
results. Fresh demand in a mar- 
ket short of stock lifted Tarmac 
8 more to 456p, while occasional 
interest imparted strength to 
London Brick, 54 up at S4p. 

Turnover in leading Chemicals 
was small, but the undertone re- 
mained firm and ICI gained 8 to 
346p. 

Gussies wanted 


a firmer bias. Gnssies “A” were 
particularly good at 495p, up 10, 
while F. W. Woolworth added a 
penny more to 54 Ip; the latter’s 
preliminary results are expected 
tomorrow. Marks and Spencer. 
143p, and Deberihams, 82p, added 

2 apiece, while, among news- 
agents, W. H. Smith, 17 lp, and 
Martin. 330p, rose 4 and 5 re- 
spectively. The full-year deficit 
announced by Greenfields 
Leisure was fully discounted and. 
on the marked improvement m 
current trading, the close was 4 
dearer at 23p. Sonic Sound were 
briskly traded in response to 
favourable Press comment and 
advanced 12 to 112p, after 116p. 
Among the more speculative 
counters, Polly Peck rose 5 to 
345p, while Austin Reed 
improved 7 <to 7Sp. with the “A” 

3 up at 72p. 

Shoe nranafacturers David 


Scott jumped 4 to 211p, a frac- 
tion below the price paid by 
an unnamed party which 
acquired a near-11 per cent stake 
in a dawn raid yesterday. 

The Electrical majors con- 
tributed to the firm trend. Re- 
newed investment support ahead 
of the preliminary results 
scheduled for March 24 helped 
,5 ICC to advance 11 to 323p, 
while GEC gained 7 to S27p and 
Ratal 6 to 363 p- PJessey 
hardened a couple of pence to 
370p. Adverse comment, how- 
ever, farther unsettled recently 
weak Thorn EMI, which touched 
42Sp before closing unchanged on 
balance at 42Sp. Philips Lamps' 
lost 7 more to 490p awaiting to- 
day’s qaurteriy results. Else- 
where, Standard Telephones and 
Cables, with annual figures due 
on Friday, rose 15 to 470p and 
Faroe! 1 improved 20 to SlOp on 
renewed speculative demand in 
a thin market A good market 
last week on the company’s $3m 
joint microchip venture with Ion 
Beam Technologies of the U-S- 
Dnbllier jumped 7 afresh to 7Sp 
in response to Press comment 

Leading Engineers passed 
another quiet trading session. 
Among the occasional move- 
ments, GKN drifted off to close 
4 cheaper at 158p and Tabes 
eased a couple of pence to 126p. 
Elsewhere. Davies and Metcalfe 
“A” featured with a jump of 10 
to 60p in response to tile pre- 


remajned a firm market at 190p. 
up 7. while sporadic support left 
600 Group 3 dearer at 71p. 
Jeavons, reflecting the annual 
results, dosed 2 higher at 58p. 

Quietly firm conditions pre- 
vailed in Foods. Cadbury 
Schweppes edged up 1 to 904-p 
and United Biscuits a penny to 
130p; both companies have pre- 
liminary results, scheduled for 
Thursday. Albert Fisher, a firm, 
and active counter last week in 
the w-ake of Mr A. B. Millar and 
associates acquiring a 28.9 per 
rent slake in lie company, 
touched 37.p hefore drifting off 
to close 2 cheaper on balance at 
34 jp. Despite the workers’ vote 
to continue industrial action at 
the company’s processing plants, 
Bernard Matthews added 5 to 
llOp. 

Pharmaceutical concerns 


WORLD VALUE OF THE POUND 


Tfcfl table below gives tho latest 
available rets of exchange Bor tha 
pound against various currencies on 
March 8 1982. In soma cases 

rates am nominal. Market rates are the 
average of buying and Balling mas 


extent where they era shown to be no direct Quotation available: (F) tree 
otherwise. In soma oases market rates rate: (P) based on U.S. dollar parities 
have been calculated Irom those of end going aurling/doNar rates: CS) 
foreign currencies IQ wh«sb they era member of the sterling ares ether than 
tied. Scheduled Termones; fT) tourist raw: 

Abbreviations: (A) approximato r«e. (Baa) basic rate; (bg) buying rate: 


PLACE AND LOCAL UNIT 


Afghanistan .. — .... Afghani.. ; 

Albania. — LeK i 

Algeria Dinar j 

. . (French Franc i 

Andorra ■— 1 Spanish Peseta | 

Angola — . Kwanza I 

Antigua (51 E. Caribbean 8 

Argentina. — Ar. Peso 

Australia (*) Australian 8 

Austria. Schilling 

Azores Portuge se Escudo 

Bahamas (g). Ba. Dollar ’ 

Bahrain (S> Dinar , 

Balearic Isles Spa. Pesata 

Bangladesh /S) Taka 

Barbados IS) Barbados S I 

Belgium... B. Frano J 

Belize B 3 

Benin C.F.A. Franc . 

Bermuda (S) Bda S j 

Bhutan Indian Rupee 

Bolivia Bolivian Peso 

Botswana ISj Pula 

Brazil Cruzeiro It 

Brit. Virgin Isles iS) U.S. S 

Brunei ibj Brunei 9 

Bulgaria Lav 

Burma Kyat 

Burundi Burundi Frano 

Camero'nRepubllcC-F.A. Frano 

Canada Canadian s 

Canary Islands Spanish Peseta 

Cape Verde Isle. .. Cape V. Escudo 
Cayman Islands IS) Cay. Is. S 
Cent. Afr. Republic C.F.A. Frano 

Chad C.F.A. Frano 

Chile.. 0. Peso 

China. Renminbi Yuan 

Colombia C. Peso 

Comoro Islands.... D.F.A. Frano 
Congo (Brazavlllej. C.F.A. Franc 

Costa Wat— - CoJon / 

Cuba.. Cuban Peso j 

Cyprus CS) Cyprus £ I 


VALUE OF 
£ STERLING 


99.0 
10,15 
7.6600 
10.94 
187.60 
'(CM) 62.938 
im 66.139 
4.94 


PLACE AND LOCAL UNIT 


VALUE OF 
£ STERLING 


PLACE AND LOCAL UNIT 


VALUE OF 
£ STERLING 


Czechoslovakia. Koruna 


Denmark..... Danish Krone | 

Djibouti. Fr. 

Dominioa IS) E. Caribbean t ' 

Dominican Repub. Dominican (Peso) | 


1.7055 
29 .955 
I 126.05 

' 1.8250 

J 0.691 

187.60 

38.30 ■ 

3.6500 

I /(cm) 78.90 
| 'l(fn) 84.96 

5.6500 
' 547.0 

j 1.8250 

16.95 

80.30 

I. 6530 
£61.46 

1.8250 

5.8402 

1.7427 

II. 80 
167.19 

■ 647.0 

3.2135 
187.60 
66.79 
1.5208 
647.0 
647.0 
(Bk)71.19 
5.5143 
OF) 109.91 

647.0 

547.0 

'I0| 56.60 (4> 
(<F1 73.00 
1.4636 
f 0.8250 
. /(com) 11.10 
I -j n/e 19.32 
imi8.73 
| 14.3600 

I 310 (SSI 
1 4.94 

| 1.8260 


Ecuador- ......... 

Egypt, 

Equatorl Guinea - 

Ethiopia 

Falkland IsIcndafS) 
Faroe Islands- — 

Fiji fsfnds 

Finland 

prance — » 

FrenehC'tyin Af*_ 
French Guiana..™ 
French Pacific Is- 


suers 
Egyptian £ 
Ekucie 

Ethiopian Birr 

Falkland Is £ 
Danish Krone 
FiJ iS 
Markka 
French Franc 
C.F.A. Franc 
Local Franc 
C.F.P. Franc 


Gabon iN»...ni.iM.f< C.F.A. Franc 
Gambia (S) .......... Dalasa 

Germany (East).,.. Ostmark 
Germany (West).„. Deutsch Mark 

Ghana IS) - - Cedi 

Gibraltar (K) Gibraltar £ 

Greece Drachma 


1 '/0)45.59 
j l(Fi 66.26 
; rU/ 1.5126 
I 375.30 
| (P) 3.7500 

1.0 

14.3600 
- 2.6515 
8,204 
10JJ4 
654. 128 
10.94 
190 fag) 

547X1 

4.0 

42750 

42750 

5.02 

1.0 

f 112.193 


Greenland Danish Kroner 

14.3600 

Grenada (3) E. Gayibbean 8 

4.94 

Guadeloupe Local Franc 

10.04 

Guam U.S. 8 

1.8260 

Guatemala — Quetzal 

1.8250 

Guinea Republic... Syll 

39.98 

Guinea Bissau...... Peso 

71.23 

Guyana (S) Guyanese 8 

6.46 

Haiti Gourd 

9.1260 

Honduras Repub... Lempira 

3,6600 

Hong Kong (S) H.K. 8 

10.6520 

Hungary. Forint 

6>3.6925t£ 

Iceland «SL~......— I. Krona 

17392 

India (S) Ind. Rupee 

1 16.95 

Indonesia Rupiah 

| 1.105,39 

Iran - Rial 


Iraq.. Iraq Dinar 

0.539 

Irish Republic (Kj„ Irish £ 

; 1.2105 


| 33.70 

Italy. Lira 

2,304.0 

Ivory Coast C.F.A. Frano 

1 547.0 

Jamal oa (B) ...... Jamaica Dollar 

3.2656 

Japan Yen 

427.50 

Jordan (S> Jordan Dinar 

0.624 

Kampuchea. ... Riel 

2 .lgo.o 

Kenya (S) Kenya Shilling 

19.125 

Kiribati Australian S 

1.7065 

Korea 1 Nth) ........... Won 

l^Orili 

Korea (Sth)... Won 

1,307^4 

Kuwait Kuwait Dinar 

0.520 

Laos.. New Kip 

18.293 

Lebanon..... Lebanese £ 

8,aiao 

Lesotho Lot) 

1.6067 

Liberia Uberlan S 

1.6250 

Libya Libyan Dinar 

0.5403 

Liechtenstein........ Swiss Frano 

3.3600 

Luxembourg Lux Frano 

78.90 

Macao ..... Pataca 

12.15 

Madeira Portug’se Escudo 

126,05 

Malagasy Repu Wte MG Franc 

647.0 

Malawi (S).. Kwacha 

1.7010 

Malaysia Ringgit 

4,2016 

Maldlva Islands (S) Rufiyaa 

13.78 

Mali Republlo........ Mali Frano 

1,084.0 

Malta (S) Maltose £ 

0.730 

Martinique., Local Frano 

10.94 

Mauritania Ouguiya : 

90.20 

Mauritius (8)......... M. Rupee 

19r37B 

Mexico Mexican Peso 

82.60 

Miquelon C.F.A. Franc 

547.0 

Monaco.... French Franoh 

10.94 

Mongolia Tugrik 

(olB.Olrll) 

Montserrat E. Caribbean S 

4.94 

Morocco Dirham 

10.35(sg) 

Mozambique........ Metical 

54.50 

Nauru Australian Dollar- 

1.7055 

Nepal Nepalese Rupee 

24 J.5 

Netherlands Guilder 

4.68 

NetherfandAntftfesAntirrian Guilder 

3.2666 

New ZeaJand(S)...,N7L Dollar 

2. 3225 

Nicaragua Cordoba 

1B.25 

Niger Republlo....c.FJL Fnuio 

347.0 

Nigeria (8).. ..Naira 

1.1B5047 fsg) 

Norwaw^ Norway Krone 

1033 DO 

Oman SuTato of (SJRtal Omani | 

0.634 

Paklotan. Pakistan Rupee 

10,54 

Panama... Balboa 

I.S2E0 

papoa RGul nea (S) Kina 

13990 

Paraguay......... ..Guarani 

((0)227.82 

1(F) 260.21 


Pitcairn Island. <S, SJfEL* , 

Pdtand Zloty {ffifflSS 1 * 

JortugM. Portagu'so Escudo 136.06 

Puerto Rtco U4i. S 1.8280 

Qatar IS) Qatar Rya) ] 6.68 

Reunion lie de la_. French Frans 1 10.94 

Romania ._.Leu | f(Cm)8.29 

Rwanda Rwand Frano [ 

St, Christopher (SiE. Caribbean 5 4J34 

St. Helena -...St Helena £ 1.0 

S. Lucia — ...E. Caribbean I . I 4.94 

St. Pierre - Local Franc » 10JW 

St. Vincent (S). E. Caribbean 5 I 4,94 

Salvador El„ Colon 4.5700 

Samoa American m(J5. I 1.8360 

San Marino Italian Ura 2 304 o 

Sao Toma ft Prfn... Dobra 73.25 

Saudi Arabia. Ryal 6,27 

Senega/ ...C.F.A. Frano j 547.0 

Seychelles. — S. Rupee i ll.eOiaa) 

Sierra Leone (S) ....Leone 1 2.208s 

Singapore (S> Singapore 8 i 3.8402 

Solomon IslandwSiSofomon Is. a 1.6540 

Somalj Republic ...Somali Shilling 111 ' (Ail 1.60 

somaJr Republic — Somali Shilling i2) I 22.79 

South Africa (SI Rand i 13067 

South West African ' i - ouo< 

Territories (S/....S. A. Rand 1.8067 

Soan .. Pesata 1 187,60 

Spanish ports in ; 

North Africa Paseta 187.60 

Sri Lanka /Si ,S. I_ Rupee 37.44 

Sudan Republic ....Sudan £ iu) 1.6425 

Surinam — S. Guilder — 3.2668 

Swasl land IS) LI langeni 1 .8067 

Sweden —.S. Krona 10.4860 

Switzerland — — Swiss Franc 3.3600 

Syria.. — Syria £ (A)10,0 

Taiwan — — New Taiwan £ / 65.70 

Tanzania <Sk .Tan. Shilling I 16.75 

Thailand Baht J « ga 

Togo Republic C.F.A. Frano ! 547.0 

Tonga Islands fSj- Ha 'a nga 1,7056 ' 

Trimdad (Si — Trinidad ft Tob. ? 4.3800 

Tunisia....—... Tunisian Dinar 0,934(sc) 

Turkey —...Turkish Ura j 261.53 

Turks ft U.S. S 1^250 

TuvaIu Australian S J L7D35 

'SJ Uganda Shilling j 159.0 

United States U.S. Dollar 1J3290 

Uruguay. Uruguay Peso !■** 

Utd. Arab EmiratesU.A.E. Dirham ' 6 74 

U^.S.R Rouble 1 3168 

Upper Volta C.F^. Frano | 547.0 

Vanuatu ■'''■*? _ „ j 176.20 

j AwL Dollar j 2.7055 


Yemen Dinar 


| 187.60 

37.44 
1.6425 
3.2668 
1.8067 
10.4860 
3.3600 
(AUO.O 

65.70 

16.75 

41.92 

547.0 
1.7056 ’ 
4.380Q 
0,934(sg) 
261.53 
1.8250 

1.7055 

169.0 

1JU50 

Mentis 1. S3 
iifn'-2l.63 
6.74 
1.3166 

547.0 

176.20 

2.7055 

2.304.0 
7.85 

1(0/3.9880 

lCD4.42ai) 

1.8250 

2.0776 

8.09(60) 

(A 10.63 20 
82.4161 
10.284184 
1.6530 
1J510 


Glaxo and Beech am were good 
again iu the miscellaneous 
industrial leaders in fairly quiet 
pre-budget trading; the former 
closed S better at a new peak of 
504p, while the latter finished 
4 to the good at 242p. BOC also 
stood out with a rise of 4 to 16Sp. 
Elsewhere, Channel Tonne] 
picked up 10 at 225p on revived 

hopes that Government approval 
for the project will be given 
soon. Press comment prompted 
a rise of 4 to 5&p in Braby 
Leslie and helped to push recent 
recent bid favourite J. and 3. 
Dyson A up a similar amount 
to 95p. Investment buying lifted 
BET 13 to 163p. while Notion 
added a couple of pence at 33p 
following the sale of a subsidi- 
ary. Initial Services put on S to 

2S0p and' Extel improved 5 to 

280p. 

Maearthys Pharmaceuticals, 
which is acquiring Sangers’ dis- 
tribution depots in Bristol, 
Plymouth and Truro, firmed 5 
afresh to 150p, while British Vita 
edged forward 2 to 152p on the 
results. Mr Holmes k Court’s 
increased offer of 95p per share, 
for Associated Communications 
Corporation A shares saw the 
latter touch a peak of 97p before 
closing a net 2 up on balance at 
96p. BTR touched 364p on relief 
that a fund-raising call did net 
accompany the highly satisfac- 
tory preliminary results but 
retreated on profit- taking to 
finish 2 off on balance at 350p. 

Already 5 up at the official 
close, Pleasnrama, a thin market, 
attracted further support in 
after hours’ dealings and closed 
22 nip at 412p. 

Leading Properties made small 
progress underpinned by 
interest rate optimism and the 
strength of gilt-edged. Land 
. Securities finned 5 to 312p, 
while MEP C edged up a penny 
to 226p. Secondary issues dis- 
played a late firm feature in 
Estates and General Invest- 
ments, which jumped 16 to 74p 
on the agreed merger terms 
from Federated Land, 4 cheaper 
at 136p, after 130p. M. P. Kent, 
which acquired a 14.7 per cent 
stake in Federated Land in a 
dawn raid last October, im- 
proved 1| to 7Hp. Demand 
ahead of tomorrow’s interim 
results left R. Green Properties 
2 up at 81 p, white Mountvtew 


investment recommendation, 
gained 6 more to 17Sp. West- 
minster and Country added 3 
more to 78p in continued 
response to last Friday's good 
half-timer, but Whittington 
Estates, up 5J on Friday on the 
board changes and discussions 
which may lead to a property 
acquisition. relinquished a 
penny to 2Sp. 

Oils down 

The decision by leading 
OPEC members to reduce out- 
put failed to benefit the Oil 
sector and last Friday's rallying 
tendency soon gave way to 
further depression. Among the 
leaders. British Petroleum weak- 
ened S to 274p, but Shell 
finished a couple of pence higher 
at 344p, after 340p, the latter 
awaiting Thursday’s preliminary 


figures. Lasmo reacted 10 to 
290p and Ultramar dosed 
similarly cheaper at 35Sp. 
Among the exploration Issues, 

Berkeley encountered fresh 

offerings and g* v e op 10 to 250p 
along with KCA International, 
which ended 4 down at S5p. _ 

Publication of Touche Rem- 
nant’s reorganisation proposals 
prompted improvements ' in 
several of the Trusts involved. 
Trust Union gained 4 to 9Qp and 
International Investment' 3 to 
lOfip. while rises of a couple of 
pence were marked agai ns t 
Cedar, ' 103p, Industrial and 
General, 77ip, Continental 
Union. 170p, and CLRP, lOSp. 
Among Financials, RP Martin 
gave up 12 to 393p following 
com me nt on the interim results. 

Movements in Textiles usually 
favoured holders- Nottingham 
Man nafrtnrin g rose 3 to 171 p, 
while TootaJ, helped by caM 
option activity, added a c ouple 
of pence to 8p. An exception to 
the trend was provided by 
Shaw and Marvin which eased 
14 to lS}p on Press suggestions 
of an imminent rights issues. 

Golds depressed 

Renewed pressure on the bul- 
lion price — finall y a further 
$16.75 down at a 20 month, low 
of $326.5 an ounce produced 
further heavy selling of South 
African Golds. 

The Gold Mines index dropped 
10.3 more to 216.0— a fan of 38.0 
over the past four trading days 
and its fewest level since Novem- 
ber 21 1979. 

The sbaremarket came under 
persistent pressure from the: out- 
set as sizeable offering followed 
American selling late on Friday. 

Modest buying from Johan nes- 
burg and the . Continent 
prompted a manor rally around 
mid-day, but this soon petered 
out in the face of renewed 
American and London selling in 
afternoon trading. 

The reductions In U.S. prime 
rates had little or no effect on 
market sentiment which con- 
tinued to he influenced by talk 
of further middle eastern and 
Soviet bullion sales. 

In the heavyweights, losses of 
a point and more were common 
to Randfontein, finally £J.9±, and 
President Steyn, Hi, while fells 
in excess of j were common to 


!rj»:i _ I«0 14B .‘.’^Oceontas tOp.;.... M . 14*1 M1.8;4.7i I j »,7 

:p_p. 151* 15 iT5W5g:.. : 3* : --v :F0r8, — .8,4 — ' 

F.pIilB/2 ; 66 ; 47 ’*York Mouxrt. -05 . 164^1, 5^,11,7, U 


FIXED INTEREST STOCKS : : ■ 



ACTIVE STOCKS : 

About a vtrag*. activity wj* notod m Tha ■following atoekt yiatardty.. 



Closing 



' Closing . • _• 


price 

Day’s 


price Day's . 

Stock 

penes 

ohsngs 

Stock 

psnes chst^e 

Bst Ind* : 

...... 435 

- 3 

Plesaay 

.... 370 + a . 

BTR J :... 


- 2 

Pres Stsyn - 

.... ■ -cm ■ 

Parrat Devs. 


+ 15 

Scholes (G. H.) 

.... 300 - ’428 . 

Charter Cons 

222 

+ T 

Sonic Sound 

.... 112 -+12 • 

Dubilior 

78 

+. 7 

Thom EMI. 

.... *28 . — : 

GEC 

8Z7 

+ 7 

"Wimpey (G.) 

:... loa .;+ 9 


FRIDAYS ACTIVE STOCKS 

Band on barpam* rtcarded in SE Official List 


Western Deep, £11 and Free 
State GedtUd, £11. 

South African Financial 
mirrored the trend in Golds. 
The falling bullion price and 
weakening Financial Rand rate 
depressed “Amgold” by £3 to 
£284 while ‘‘Johnnies" fell £lfl» 
£29 and GFSA‘ a point to £23f. 
Anglo American Corporation 
dropped 30 to a 1981/82 tow of 
495p and Gencor 38 to 712p. . .. 

De Beers gave up .11 to a 
1981/82 low of 292p ahead of the 
interim figures, expected today. 

Consistent and welT-distrihuted 
support saw 2.105 deals com- 
pleted in Traded Options yester- 
day. Calls amounted to 1.497. of 
vftiich British Petroleum 
accounted for 315, and 
Courtaailds for 300. Puts 
-attracted 60S trades, almost hatf 
of which were struck in BP. 


Stock i 

BTR 

BH Prop 

Cn* Gld F raids 
Whittington Ett 
Bafdaya Bank 
Da Boor* Dl... 
N«tWa#t Bk . 1 .. 


Friday’s 




Friday's 

pries 

pnee 

Day’s 


price 


ohsnges pence 

change 

Stock 

changes panes 

23 

352 

-10 

RTZ 

2D 

423 

- 22 

440 

-25 

GEC 

19 

820 

22 

375 

- 2 

ICI 

19 

338 

21 

29 

4 54 

BP 

17 

282 

20 

505 

■+10 

Glaxo 

17 

496 

20 

303 

- 7 

KCA bit ... 

17 

89 

20 

465 

+ 10 

Mrfca and Span 

17 

1 141 


OPTIONS 


First Last Last For 

Deal-. Deal- Declare- Settle- 

ing* - tags tion mrait 

Mar 8 Mar 19 June 17 June 28 

Mar 22 April 2 July 1 July 12 
Apr 5 Apr 28 July Iff July 26 

For rate indications see end of 
■ Share Information Service ■- 
Calls were taken out jn Tri- 
Sent TV. ICL, First National 
Finance, Blaek and Edgiugtoa, 
Hawtin, Strata, Woodside, Gill 


and Duffns, Gulf Stream Re- 
soarees. Town and City Pro- 
perties, Clive Discount, Brook 
Street Bureau. Barker and 
Dobson, Cater Alien, NCC. 
United Guarantee. OTFL APV, 
Phicom. Tri control, Exco. Drle- 
fontein. Offshore Oil and Tootai. 
Puts were arranged in Unise! 
and South vaal. while doubles 
were struck in First National 
Finance. Courtaulds, ICI and 
Tncentrol. 


(Bk) bankers* ratw fcml ctjrnmsrcial 
rats: (ch) crjnvsrtibls rats: (In) fm«i- 
cisl ratsa: (axC) ecchangs certificate 
rata: NO Scheduled Territory: (ncl 
non- comm arc is I rata: («om) nominii: 
(o) official rate (sg) selling rats. 


8ol exo (A1 989.36 

Philippine* Philippine Peso....' 14.9770 

PKotfrn liluidi (S> ft ^ 

Poland ZI at* ! fCm.il50.10 


NEW HIGHS AND 
LOWS FOR 1981/2 

TTw following ouoSztlons In the Share 
information Sernce yeitortlav attslntd new 
Highs IM Lows for T9B1-S2. 

NEW HIGHS (100) 

BRITISH BUNDS (IX) 
CORPORATION LOANS 441 
COM 'WEALTH ft AFRICAN LOANS (1) 
LOANS (2| 

FOREIGN BONDS m 

BANKS (4) - 1 • 

BEERS (II 
BUILDINGS (IS) 

CHEMICALS <4> 

ORAPERY & STORES (X) 
ELECTRICALS C7) 
ENGINEERING (6) 

FOODS •<> 

HOTELS #1) 

- . INDUSTRIALS (IB) 

INSURANCE a) 

LEISURE «1 ' 
NEWSPAPERS Cl) 

PROPERTY (5) ■ 

TEXTILES (3) 

TRUSTS m 
TEAS (1» 

NEW LOWS (81)' 

AMERICANS (Si 
A*W* SheH Oil 

Ccrfyeto-PalmBlfve United TeOv 

. „ ' CANADIANS IS* 

Sow Veliev Gulf Canada 

Broun 

. ENGtNEXRNIG (1) t 

Brotherhood fPeterj 
. _ INDUSTRIALS C3) 

Hotib Bra*. Sconvhlll 

Monsanto 5k 

HK Lend 

Bartow » 

„ TEXTILES III. 

Yorlok Fhw Woollen 

TRUSTS (SI 

N. Dtulei) Oil Tit Bon wfa on d 
PrKloy*. Metals Mexico Fond 

Wlntorbottom 

^ . OIL ft GAS. H5V 
C barter-tail P*t Pet • 

ColMiM ^K.j pet. Ranper Oil 

Edinburgh Sees. SA5AL - 

GulMrm. Res. Can. Sceptre Rec. 

Hamilton oil Uftnmar 

luternatlonal Pot Weeks CSerrmMj) 

KCA lot DO. Prof. CAuit.) 

Montv Firth 

_ . _ MINES 1461 


FT-ACTU ARIES SHARE INDICES 

These indicts arc tfic jolnt compilatiwi of the Finsncial runes, the Institute «f Actuaries 
. • Mdthf Facufty tf Actuaries 


Durban Deep 
East Rand Prep. 
BracAetl 
ERGO 
Kforoa* 

Leslie 

Biwoor. 

DmI kraal 

Docmfonteia 

Drlcfontcm 

Elaadn-anO 

Elsburo 

HarMKtlt, 

KlOOf Gold 
Libanon 
Stlllontcln . 

Vul Reefs 
Vcimraoost 
Western Areas 
Western Deep 
ZjBdpm 
F.s. Gcduln 
Loraire 


Pres. Brand 
Pres. Stent 
St- Helens 

WrIXom 
Western Hides. 
Anglo- American 
Anglo Am. Gold 
Middle Wit. • 
Muorco 
New WJfc 
U.C. In*. 

Anglo- Am. In*. 
Oe ScorS Pefd.' 
Inwali. Plat. 
Lvdenbure 
Rustenbuni PM. 
Roan Cons. 
Zambesi* Copper 
Argos* Gold 
G.M. Kalgoorlle 
Kalbara 
Tronofl 

Sabffia litda. . . 


Eaumr groups ^ 

& SUB-SECTIONS : 

Runs In parentheses show number o 
stacks per section 

1 CAPITAL GOODS (210) 

2 Building Materials (25) 

3 Contractinji Construction (2B)~. 

4 Elecbr(calsC31)~. : ^ 

5 Engineering Contractors (9) i 

6 Mechanical Engtaeeringtferi - 

8 Metaisand Metal Forming(12)—L-. 

9 Motors (ZL) 

10 Othar Industrial Materials (17) 

a COMSUMEWCROUP (198) 

22 Brewers and DUtiNm (21)_^ 

25 Food Manufacturing (ZL) 

26 Food Retailing (15) 

27 Health and HouseboU Products (7)-- 

29 Labure(24)\u.~ 

32 Newspaper PubHsfiiog 02) 

33 Packaafaw and Paner flTI — 1 _ 

34 Stores (45) : : . 

35 Textiles (7S\ — 

36 Tobaccos (3). - 

39 Other Consumer (14) 

41 OTHER GROUPS (79) £ 

42 Chemicals (16) t 

44 Office Equipmem (4) 

45 Shipping fed Transport (13) ! 

3L MisceHaneous tstsf. ■ 

5L HWOSTMAL GROUP tmn 

51 0llsfl3) -"1 

39 500 SHARE IHBEX 

61 FINANCIAL GROUP 017) “ 

62 Banks(6). : . ~ - 

63 Disctwnt Hotan to) ■ 

65 Insurance (Life) C9) .. . 

66 instance (Composite) (10) 

67 Insurance Brokers (7) 

68 Merchant Banta (12) _1 

69 Property(4g)_> 

70 Other rmawdal (15)- • ' 

71 Iwtstmeot Tools (U2) 1" 

81 Mining Finance (4) ... ■ 

91 Ojjgseoo Traders (17) 

99 AUrSHARglHPPCnsni 


Mon March 8 1982 



- Efl. 


0 *^ 

Eamlogi 

Dfv. 

Yield % 

Yield % 

Change 

(Mu.) 

(ACT 

% 


at 30%) 

+11 

022 

431 

+11 

1334 

530 

+2L5 

14.98 

436 

.+13 

129 

229 

+<L2 

12 AS 

5.77 

+8.7 

1079 

533 

+83 

735 

736 

+11 

■ 

074 

+ 82 . 

8J» 

534 

+8.9 

1Z28 

538 

+11 

16.13 

069 

+83 

1437 

-624 

+83 

8.88 

326 

+13 

7.97 

■ 4,08 

+12 

936 

4.97 

-83 

1101 

6.06 

+83 

1353 

7.29 

+1.7 

20.65 

4.99 

+14 

9.41 

5.70 

r-0.4 

1937 

824 

+83 

034 

5.97 

+15 

1234 

5.95 

+2.0 

12.76 

055 

+83 

12.63 

6.74 

+8.4 

1831 

- 048 

+13 

•1127 

.534 

+11 



-15 



+0J 


522 

+03-- 

— •> 

539 

+12: 

3SJ8- 

6.93 

+13 

— 

932 

-0.1 

— - 

:639 

-88 

. — - 

013 

-02 

9.W 

530' 

-02 

— . 

535 

+88- 

439 

'335 ■ 

+02. 

1525 

534 

+05 

— ' 

539 

+03 

1638 

6.93 

+04 

1329 

8.08 

+88- 

- 1 

519 


-JK T »» Yw 

M«h March March a«e . 

■ . 3 2 (nvml). 


Wn Mm 

No. fe 


3UJ0 
322.99 
. 994,98. 
124830 
50637 
193 J5 
16466 
9767 
39344 
29563 

288.41 
28434 
618-55 
38749 
439-59 
515.95 
14666 
266.17 
27288 
31760 
28162 
256.99 
34535 

127.41 
57176 
TIB XL. 

26761 ' 

30025 

23466 

2ttn 

OT.78 
•6745 
14138' 
463JE7 
■ 186.18 
30103 ‘ 
’20481 : 

39239 ; 

“ 


364.67 

31927 

5*5.49 

l 124142 
51161 
19168 
16664 
9769 
39762 
29469 
29061 
28343 
61064 
3718.60 
448.71 
516.79 ! 
14563 
26441 
17063 
31466 
27649 
253.62 
337.70 
12496 
57466 
31562 
31367 
64775 
34061 
26340 
29263 
232.42 
-25862 
16768 

147.90 
■ 45674 
18676 
30647 ' 
20961 
■395.94 


36466 
32162 
582.42 
124L04 
50751 
19163 
16569 
9770 
39773 
29467 
28977 
28464 
60656 
379.12 
43769 
51867 
"145 J8 
26563 
-161.72 
31674 
27463 
253.71 
339.81 
12442 
57462 
33443 

15b 

292.63 

22549 

25758 

36972 

499.76 

146.13' 

457 99 . 

38567 

383.08 

21256 

39267 


30711 
268* 
48479'.-=: 
300248 
41250 
1SL67 
'14S.76 
• 8976. - 
33275 : 
24572 
2M13 
W77 
#«6l... 
27.88" 
360.94.' 
44574 . 
12371 
25X72/ 
140-70 
216.96 
259.42 . '. 
20972 
288.94 . 
10766 
57859 : : 
27*78 
26169 
853.22 " 
30858 
24378 
225.99 
29972 
2547S 
15958 
353.48 . * 
15245 - 
474J2 
17362 - 
28876 
21763 
44118_ 


•That part of the French community in Africa formerly French .West Africa or French Equatorial Africa, t Rumbb D*r pound, t General ratua o( oil end km 
exports 76 65. "Rate is the transfer market (controlled), t* Now one official rale. (U) Unified rata. Applicable on all transactiona except cnuntrwe having • 
bilateral agreement with Egypt and who are not members of IMF. ((E) Based on prose rates against Russian rouble, (f J Paro/faf exchange rate for essential import*. 
(2) Exports, non-essential imports snd transfer. ,(3) Now one rets, (4) Essentia floods. 


RISES AND FALLS 
YESTERDAY 

. IBeee - F*l!t' 5flme 
British' Funds 81' 2 • 

Corpus. Dom. & - 

Foreign Bonita ... . 20 3 4 

Industrial* ' 372 ,148 '• BSi 

Financial 6 Praps. 148 65 306 

Oil* 19 42 49 

Plantations ......... ' 3 • 1 20 . 

Minas ' 37 85 • . 

Others B « 36- 

Totals 748 -335- 16^ 



_ — - 7 . - »- 1552 . _ 





































































































































































































































































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130 
213 
97 72 

71 41 

57 48 

V K 
80 32 

29' 12 
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286 
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54^1 54 
216 
308 
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Fulcrum Inc 

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FmdinvBt Inc.... 



reenffiar Inv 


340 

■a 
208 
169 
92 68 

53 371, 

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1 63 25 

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88 42 

177 109 

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NOMURA 

Tha Nomura Securttiu Co., Lfa. 

Nomura IniemaJional Limited 

3 Gnccchutch St wet. I onaen ECJJ QAE» 

Tel rOllSPS-PSlI 


Murray Clydesdale 
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NOTES 


.Udea otherwise Infested, prices and net dMdenfc are In pence avd 
dmominatlM are 25p. Estimated prio/eannngt mkK and coven aw 
based on latest annual reports and accoeob and, where pourida, ai« 
updated on haH-jwty figure*. P/Es an caloMed on “net" 
dbuSWten bass, earnings per *are being competed on profit after 
caxadon and unrelieved ACT «bere applicable; bracketed figure* 
indicate 10 per cent or mote difference if cafariated on “nil" 
dUtritseJM. Coven are bawd u “maxi mum" fistrimdion; (Ms 
compares gross dividend costs to profit after taxation, enUtaig 
exceptional profftslhwes but inchxfing estimated extent of affsettabir 
ACT. Yields are based on mhtte prices, are gross, adjusted to ACT of 
30 per cent and aHm for value ol declared drurtbution and rights. 

• "Tap” Stock. 

■ Highs and low* raaikcd Urns have been adjuud to aBow for rights 
issues (or cash. 

t interim since increased or resumed. 
i Itterim since reduced, oassed or deferred. 
it Tax-free io non-resldems on mvlKathm. 

4 Figures or report awaked. 

4- USM; not fisrod on Stock Exchange and compngr not sobjtdid to 
same degree of regulation as listed seauMcs. 
tt Dealt mwaler Rule 163(2Xa); not listed on any Stock Exttenga 
and not sotyect to any listing regunemeots. 
tt Dealt In under Rule 163(3). 
d Price at time of suspension. 

f Indicated dhddend after p end in g scrip anctfor rights issue: cover 
relates to prerlons dividend or forecast. 

4 Merger bid or reorganisation in progress. 

♦ Not comparable. 

a Same interim: re du c e d final and lor reduced earnings indicated. 
§ Forecast dividend; cover on earnings ipdaied by latest interim 
statement. 

J Cover allows for conversion of shares not now rankly for dividends 
or nvddng only far r e s tricted dividend. 

* Cover does not allow for shares which may also rank for dividend at 
a future date. Nb P/E ratio usually provided. 

N No par value. 

H Ytekt based on assoamtlonTreasoryBUl Rate stays unchanged wttH 
maturity of stock. ** Ava ffaMe only to OK pension schemes and 
Insurance companies engaged In pension business. > Tax free, 
b Figures based on prospectus or other official estwte. c Cents, 
d Dividend rate paid nr payable on pa it of coital; cover based on 
dividend on fuN capital, a Redemption yield, f FUt yield, g Assumed 
dividend and yield, h Assumed driWcnd aod yield after scrip tame, 
j Payment trim capital sources, k Kenya, m Interim hkFier Uon 
prrvioos total n Rights issue pending, g Earnings based on ptehimasrf 
figures, s Dividend aad yield exclude a special payment, t Indicated 
dMdrad: cover relates to previous di vi dend. P/E ratio based ou latest 
annual earnings, o Forecast dvfdend: cover based on previous year's 
eamlnto. v Tax free ap to JOp in the £.yDMdead and yield based so 
merger terms, a Dividend and yield Include a special payment: Cover 
does not apply to special payment A Net dividend and yield. 
8 P r cfeienc e dMdend passed or deferred. C Canadian. E MbUmom 
tender price. F Dividemi and yield based on prospectus or other official 
estimates for 1981-82. G Assumed dMdend and yield after penfing 
scrip awl/or rights issue. H DMdend and yield based on prospreus or 
other official ealroates for 1982. K Figures based on prospectus or 
otter official estimates tor 2981-82. M Dividend and yield based on 
prospectus or other official estimates tor 1983. N DMdend and yield 
based on prospetoui or otheroffidal estimates tor 1982-83. P Flguri 
based on p ros p ect u s or other official estimates hr 1982. A Cross. 
T Figures assumed. Z Dividend total to dale. 

Abbreviations: to ex dividend; s ex scrip Issue; * ex rights; a ex 
ad: to ex capital distribution. 


Pros. Brand 50c 
Pres. Steyn 50c. 
St Helena Rl._ 


46 j23 
£18 
815 
£51fa 
£23 
280 
543 
30 

£ 12 *. 

£46 


Ti 


54 

v is 

6.6 298 

28 87 

335 
403 
93 

- 

5JJ 370 

1 2 *415 

4.7 W 
73 

2.9 47 


4CCP North Sea 


£41 
880 
710 
274 
£10 
255 
112 
43 
380 
448 
134 
458 
98 

£2712 
680 
4.4) I 152 


6.9} £47 
- 422 




■ hr. 

I 


315 1157 IRia. PlaL 



“Recent issues” and “Rights” Page 36 


TMs serricx b aoiMafalt to every Coramy dealt to 
EdCtangei throoghoot the United Klngdra I or i tea Of £600 
|wr UM for gMl seebrity 











































































































































































































































Getatable 

I NEWPORT 


NE 

For details of industrial development sites 
contact Steve Wehrie, 

Dept FT, The Civic Centre, Newport Gwent 
Tel: (0633) 


FINANCIAL TIMES 


Tuesday March 9 1982 



NHS 


THE LEX COLUMN 


BY IVO DAWNAY, LABOUR STAFF 


THE GOVERNMENT yesterday 
allocated an additional £S1.9m 
to its £6.5bn health service pay 
budget in a move which is 
certain to take the offers due 
to be made today to nurses and 
midwives above the 4 per cent 
public sector pay ceiling. 

The new funds— two-thirds of 
which will be pa-id by tbe 
Government's special contin- 
gency reserve and the rest by 
health authorities-^will be 
available only to nurses and 
other skilled staff. 

The additional payments were 
immediately condemned as in- 
adequate by all three principal 


health service unions which are 
seeking a 12 per cent pay in- 
crease and shorter working 
hours. 

Announcing the allocation in 
reply to a Commons question, 
Mr Norman Fowler, Health and 
Social Services Secretary, said 
the money had been made 
available “to ensure that the 
service can recruit and retain 
trained staff needed for patient 
care.” 

It is also understood, how- 
ever, that the Government has 
been under increasing pressure 
from backbench MPs to make 
nurses a special case in the 


light of other public sector 
awards which have breached 
the 4 per cent ceiling. 

The £81.9m package will pro- 
vide £63 m for nurses and mid- 
wives. £5m for other profes- 
■edonal medical workers such as 
physiotherapists and chiropo- 
dists, £lm to ambulance 
staff and £300,000 to hospital 
pharmacists, with the balance 
covering additional national 
insurance and superannuation 
costs. 

Tbe detailed distribution of 
the funds will be made by the 
Whitley Councils, the National 
Health Services’ negotiating 


forum, which are due to put 
formal offers to staff at a series 
of meetings this week. 

The most vociferous opposi- 
tion to tbe Government’s move 
came yesterday from the 
National Union of Public 
Employees which represents 
300,000 health service workers. 

Mr Bob Jones, national 
officer, said Mr Fowler’s state- 
ment was an “ unacceptable 
prescription" which would do 
nothing to alleviate low pay in 
the service. 

“It is clearly an attempt to 
divide and rule staff em/loyed 
in the health service and Nape 


Belgian plan I Sweeping TUC council 

to extend , , . 

austerity changes may be stopped 


austerity 

measures 

By Larry Klinger in Brussels 

THE BELGIAN Government 
yesterday proposed -wide- 
ranging spending cuts, increased 
taxes and higher social security- 
charges to reduce public 
expenditure by BFr 112.5bn 
(£1.4bn) this year. 

The moves are the most poli- 
tically sensitive in the recent 
series of austerity measures. 
They are aimed at shoring up 
the crumbling economy and 
restoring international confi- 
dence in Belgian economic man- 
agemenL 

The proposals include:— • 

• Cuts of BFr 15bn in unem- 
ployment benefits. 

• Savings on health care total- 
ling BFr 6.5 bn. 

• A reduction of BFr 5bn in 
spending on pensions. 

•A cut of BFr 2.4bn in the 
previous Government's defence 
spending provisions. 

• Higher taxes on single people 
and those paming more than 
BFr 3m a year to yield 

BFr lObn. 

• Increa s ed social security con- 
tributions to raise BFr lObn. 

The proposals are not as 
harsh as those recently recom- 
mended by the European Com- 
mission. but are in line with 
the views of private sector 
economists. 

Unemployment 

Industrialists and bankers 
have said bigger cuts would be 
dangerously deflationary follow- 
ing the recently imposed 
national wage and price curbs. 
The prices of many goods and 
services were frozen last month. 
At th esame time Mr Wilfried 
Martens’ Government acted to 
keep pay increases this to a 
maximum 3 per cent in real 
terms. 

The government's immediate 
problem is with the unions. It 
said yesterday that unemploy- 
ment — at more than 450,000. or 
about 13 per cent of the work- 
force — is likely to rise to 
520.000 by the end of the year 
before measures for job- 
creation and economic revival 
can fully take effect. 

- Ministers will try to win the 
support of national union 
leaders at a series of meetings 
this week. 

Protest demonstrations con- 
tinued over the weekend, how- 
ever, and union pressure is 
being increased. 

Militant workers at the 
Cockerili-Sambre steel combine 
centred on Liege and Charleroi 
yesterday decided to continue 
their 10-day stoppage. The 
socialist-led unions have called 
a two week series of 24-hour 
rotating strikes for various 
parts of the country, starting 
today. 

In addition to increasing 
taxes on the better off, the Bel- 
gian Government said ' its 
proposed savings on unemploy- 
ment pay are based on a crack- 
down against wide abuse of a 
loophole which allows wives 
employed by their husbands to 
draw full benefits after only 
token employment 

The government has suggested 
it may extend its price freeze 
on some items until the end of 
the year. If this is applied too 
rigorously, it could alienate the 
Government’s support in indus- 
try. 

In other measures, tbe coali- 
tion is seeking economies in 

ministries. 

Belgian steel strikers, Page. 2 


Continued from Page 1 


BY JOHN LLOYD, LABOUR EDITOR 


Costs 


10), i per cent higher than in 
January. 

• The volume of retail sales 
rose in January to 107.0 (1078= 
100), according to final Trade 
Department figures yesterday. 
This increase, from 104.6 in 
December, is thought to indicate 
that December sales were 
abnormal lylow. From Nove m- 
ber to January, sales were i 
per cent lower than in the 
previous three months. 

The value of total retail sales 
in January was 8 per cent 
higher than in the previous 
January, although die volume 
was 1 par cent tower. 


UNION LEADERS opopsed to 
the sweeping structural changes 
to the TUC’s general council at 
last year's TUC Congress, 
believe they will muster a 
majority against the plans at 
this year’s congress in Septem- 
ber. 

The 490.000-strong Association 
of Scientific. Technical and 
Managerial Staffs, which voted 
for the changes last year, is now 
lifceiv tn vote against them. 

The ASTMS vote would not in 
Itself reverse last year's vote of 
64^1.000 in favour to 5.143.000 
against, but it is thought the 
National Union of Public 
Employees, with nearly 700.090 
votes, might also now oppose. If 
it did — or if a smaller union 
were to change it vote — the 
hotly-rieheted changes would not 
go through. 

Mr Olive .Tonkins ASTMS 
e p n erel s*»cretary. said yester- 
day the proposals tor chanee 
advanced by the TUC. were 
“ inadeonatp and unsatifactory ” 
They would produce an over- 


large and un wieldly general 
council. He wished to avoid a 
** situation where we simply 
added seats." 

The council has accepted in 
principle the congress decision 
to change, which would put on 
to a future general council the 
leaders of all unions with mem- 
berships of more than 100,000 
— the . so-called automatirity 
principle. Many of the unions 
who . would benefit from this 
move are led by right-wingers. 

This would mean a number 
of smaller, generally left-led 
unions, would ultimately lose 
seats — though die propoals 
drafted by the TUC assume 
that the leaders of small unions 
who are general council mem- 
bers would remain there until 
they retired. 

The issue has divided the 
TTJC unions in spite of the 
efforts of Mr Len Murray, flip 
TUC general secretary, to bring 
in structural reform in a 
neutral fashion. The powerful 
Transport and General Workers 
Union, with 1.7m members, has 


been solidly opposed to the 
changes. 

Mr Moss Evans, the TGWU 
general secretary, yesterday 
denied a report that the union 
was attempting to set up an 
alternative power base to the 
TUC, composed of a number of 
smaler unions, also opposed to , 
change, under the TGWlTs 
umbrella. 

In a letter to The Times 
today, Mr Evans says: “There 
is not the slightest intention ” 
to set up a rival centre. 

“ Certainly we have been 
exchanging views with other 
trade unions about the decision 
of Congress to change the 
structure of the General Coun- 
cil. but these are not with any 
particular group, committed to 
left, right or centre." 

The TUC proposals on the 
structure will be discussed at 
the nert meeting of the TUC’s 
Finance and General Purposes 
Committee on March 22. and 
are likely to come up at the 
General Council meeting on 
March 24. 


Labour confrontation postponed 


BY EUNOR GOODMAN. POLITICAL CORRESPONDENT 


LABOUR LEADERS yesterday 
postponed the confrontation — 
which threatens to shatter the 
party’s fragile truce — over 
whether members of the- Trot- 
skyist Militant Tendency should 
stand as official Labour candi- 
dates. 

The party's organisation com- 
mittee voted unanimously in 
favour of making Mr Pat Wall, 
the Militant member chosen as 
candidate for Bradford North, 
go through another selection 
conference. But they endorsed 
Mr Derek Sotton, another 
member of Militant, as Labour 
candidate for Liverpool Waver- 
tree. 

A . move to prevent further 
members of Militant being 
endorsed as Labour candidates 
until after the party’s inquiry 
into Militant activities has been 
completed was heavily defeated. 


At the weekend Mr Wall 
incensed many Labour MPs 
when he warned Britain must 
either transform society or face 
civil war. 

But his speech was not a 
factor in the decision to call 
a new selection conference. 
Instead, the committee agreed 
that minor rules had been 
broken during Mr Wall’s selec- 
tion. 

A new selection . contest will 
be held — although probably 
not until well after tbe May 
local elections. This means Mr 
Ben Ford, the sitting MP who 
was defeated by Mr Wall, will 
have a chance to stand again. 
Since membership of the local 
parry will be frozen until a new 
candidate has been selected, 
however, it appears likely Mr 
Wall wil be chosen again. 

Whether he stands for Labour 


at the next election will then 
depend on the oirteomc of the 
inquiry into Militant. 

Mr Wall’s speech will be con- 
sidered by the inquiry. Yester- 
day Labour moderates said the 
speech provided them with their 
most powerful ammunition yet 
in their campaign to rid the 
party of Militant 

The tone of Mr Wall’s speech 
was at odds with Mr Michael 
Foot’s commitment to parlia- 
mentary democracy. But yes- 
terday the Labour leader did 
not actually repudiate Mr Wall 
by name. Instead he reaffirmed 
Labour’s commitment to parlia- 
mentary democracy, and pointed 
out that the national executive 
had. on his instigation already 
set up an inquiry into Militant 
in an attempt to ensure that 
“our principles of parliamen- 
tary democracy are upheld." 


Euroflame Holdings faces inquiry 


BY JOHN MOORE. CITY CORRESPONDENT 


THE DEPARTMENT of Trade 
is to make its first inquiry into 
a company quoted on the un- 
listed securities market after a 
complaint 

Two Trade Department 
inspectors will investigate Euro- 
flame Holdings, the cooking 
appliances distributor. 

The inquiry is to be carried 
out under section 165 (<b) of 
the 1948 Companies Act 

Eurofiame has been beset 
with problems since it came to 
the market in JfiSl. Us business 
is mainly dependent on Kamina 
chef cooker sales and other 
appliances made by Effel, of 
Belgium. It came to the unlisted 
securities market less than a 
year ago but not before hitches 
in the flotation proceedings. 

Mr John Viall, Eurofiame 
chairman, indicated at the last 
minute that he would be disap- 
pointed to see profits less than 
£450,000 for the year. Since 


the sale prospectus included no 
forecast the company was 
obliged by tbe Stock Exchange 
to issue a revised version. 

This appeared last March 
with a qualified forecast “in 
the absence of unforeseen 
circumstances ” of £335,000. 
Earlier this year the group said- 
it would show a substantial loss, 
the interim dividend would be 
dropped and no final dividend 
wool be declared for 1981. 

At the beginning of this year 
on the advice of Tring Hall 
Securities, which brought Euro- 
fiame to tile market, a special 
report on the company was pre- 
pared by accountants Stoy 
Hayward. The report was com- 
pleted three weeks ago and a 
copy passed to the Stock 
Exchange. 

It studied the profit forecasts 
and the group’s financial affairs. 
Tring Hall said yesterday it 
welcomed the inquiry. The 


Stock Exchange has been carry- 
ing out its own inquiry into 
dealings In the group shares 
ahead of the last profit forecast 
announcement 

Tring Hall, the City issuing 
house, launched Eiro flame by 
selling part of its 75 per cent 
bolding in the company. Tring 
Hall retains a 36 per cent stake. 

Eurofiame has attempted to 
strengthen its board. Mr JX.A 
Mocatta, former managing 
director of United City 
Merchants, was appointed. 

The unlisted securities 
market was established to 
accommodate smaller com- 
panies lacking a long trading 
track record who were seeking 
capital Regulations for the 
launching of these companies 
are not as strict as for an 
official listing. The market has 
rapidly expanded since the 
Stock Exchange first gave its 
approval in 1980. 


will resist this with all the 
power it can muster,” he said. 

The Royal College of Nursing, 
which represents 194,000 
nurses, said the offer was likely 
to increase the year’s pay award 
to 6.3 per cent 

But it added : "While in some 
measure it is pleasing, it is 
only halfway to the 12 per cent 
we have beep demanding. 
Realistically, it is not enough.” 
"~The Confederation of Health 
Service Employees also con- 
demned the new funding as in- 
adequate. “ The negotiations 
this week will go ahead on the 
12 per cent daim,” it said. 


Hungarian 
banker 
warns on 
over-caution 

. By Peter Montagnon in Bade 

DR JANOS FEKETE, a leading 
East European central banker, 
warned yesterday of a chain 
reaction of debt problems and 
insolvencies if banks become 
over-cautious in ' international 
lending. 

Dr Fekete,. vice-president of 
the Hungarian National Bank, 
told a Basle Statistics Society 
symposium that general caution 
after the Polish and 
Romanian debt crises would 
create economic difficulties in 
other countries. This could 
lead to worse problems for the 
banking system. - ; 

“If one house is burning, 
there is a natural tendency to 
expect the bouse next door to 
catch fire even If there is no 
reason why that should 
happen.” 

Hungary had been affected 
by the Polish crisis iB so far 
as it coul dno longer raise 
long-term money, he told 
journalists later. 

At tbe moment all its bor- 
rowing had to be short-term in 
nature and “I am not happy 
about that" said Dr Fekete. 
He is one of the most respected' 
bankers in Eastern Europe. 

There was no chance of 
Hungary being alble to raise - a 
medium-term. Eurocredit in the 
first half of this year, th ough 
this might change in the second 
half, he said. 

Dr Fekete declined to be 
drawn on Hungary's specific 
borrowing activities. He 
stressed the caution on lending 
shown by international banks. 
He said it was overdone and 
-wasteful art a time of high 
unemployment end slow 
economic growth worldwide. 

He said Hungary dfrd not 
deserve the treatment it was 
receiving, ' having always 
managed its foreign debt very 
carefully. • Loans were -put to 
productive use fa projects that 
would generate export revenues. 

Hungary shunned Short-term 
supplier credits and began a 
process of gradual economic 
adjustment to the shock caused 
by high oil prices. In the first 
half of last year Hungary was 
able to reduce its debt to inter- 
national banks by $lbn. 


I Weather I 


UK TODAY 

SHOWERS, wintry at times. 
London, SJE. England, Midlands 
Sunny intervals, occasional 
Showers. Max 9C (48F). 

E., N.W., NJE. England, 

NJE. Scotland 

Sunny intervals. and scattered 
showers. Max 8C (46F). 

5.W. England, Wales 

Mostly cloudy, bright inter- 
vals, showers. Max 9C (48F). 
Best of Scotland, N. Ireland 
Showers, cloudy later. Max 7C 
(45F). 

Outlook: Unsettled, windy. Near, 
normal temperatures. 


WORLDWIDE 


Y-day Y’day 

■midday midday 

•C -F *C # F 

Ajaccio F 12 54 Locarno R 2 36 

AJgiara C 14 57 London S 8 46 

Arastdm. S 7 4S l Ang.t C 15 59 

Athens C S 48 Luxmbg. S 6 43 

Bahrain S X 68 Luxor S 27 81 

Bardna, S 10 50 Madrid S 9 48 


Why tipplers should toast Howe 


BY ROBIN PAULEY 

WHATEVER Sir ' Geoffrey 
Howe, the Chancellor, does to 
tbe price of drink in his 
Budget today he is unlikely to 
double the price of a bottle of 
whisky-^wfcich is almost what 
he would need to do to restore 
its real cost to the level of 20 
years ago. 

Tbe exceptional kindness 
shown by successive Chancel- 
lors to spirits tipplers has been 
revealed by the Treasury which 
has calculated the price of beer, 
spirits, wine and cigarettes as 
an index, taking the 1962 price 
for each as 100. 

The index for spirits never 
rose above -109 (1966) and has 
been under 100 since 1968, fal- 
ling more or less consistently 
every year to reach alow of 53. 
last month. This price index is 
for an average cost bottle of 


whisky, including excise duty, 
at an off licence. 

The figure for beer, oa the 
other hand, show that Chancel- 
lors have over the years been 
much less generous to its 
drinkers. This is largely 
because beer is a much more 
buoyant source of revenue for 
the Exchequer providing 
roughly- twice as much as all 
spirits put together. 

Beer started at 100 in 1962, 
quickly jumped’ to 111 by 1964 
an dthen fluctuated around the 
110 mark until 1975. It jumped 
to 117 in 1976 and last month 
was to 125, . 

The calculations also suggest 
the Chancellor is unlikely to 
have been impressed by this 
year's vigorous campaign by 
newsagents and tobacconists f or 
softer treatment of tobacco duty. 


The cost of a packet of 20 
standard-tipped cigarettes 
started at 100 in 1962, readied 
110 in 1965 un dhas fallen in 
real terms ever since. It 
reached 84 last month, exactly 
the same as in 1977 and only 
one point below the 1972 price: 

Wine drinkers would also 
have to absorb a hefty duyt in- 
crease today before they could 
co mp l a in that table wine prices 
at an off licence had returned 
to their 1962 level of 100, never 
mind the 1969 level of 132. Last 
month’s price index was just 70. 

To restore real prices to 
their 1962 level, the Chancellor 
would need to add 88.5 per cent 
to the whisky price index, 43 
per cent to the wine index, aid 
19 per cent to the cigarette 
index. 


Beirut S 17 S3 Majorca C 9 48 

Belfast F 6 41 Malaga 16 51 

Belgrd. S 7 45 MBlta. C 14 57 

Berlin S 8 46 M'chstr R 6 43 

Biarritz C 9 48 Mex.C-t — 

Bmghm. C 6 43 Miamit — — . 

Blackpl. R 5 41 Milan R 4 39 

Bard*. C 9 48 Montri.t F 11 52 

Boulgn, $ 5 41 Munich S 8 46 

Bristol F 7 45 NsirabJ F 29 !* 

Brussels S 8 46 Naples C 15 59 

BudpsT. S 6 43 Nwcstl. C 6 43 

Cairo S 23 73 N.Yorict 

Cardiff R 6 43 Nlea S 12 54 

Caa’b'ca F 16 61 Nicosia F 18 64 

Capa T. S 26 79 Oporto S 12 54 

Chicg.t F —13 9 Oslo - S • 0 32 1 

Cologne S 7 45 Paris S 7 45 

Cpntign. S 3 37 Perth S 21 70 

□•overt — — Prague . S 8 46 

Dublin S 6-43 Rykjvk. C -3 27 
Dbnmk. F 14 37 Rhodes F 17 63 

Ednbgh. C 5 41 Rio J*ot V- — — 

Faro S 17 63 Rome ft 11 52 

Florence F. 15 $9 Salzbrg. S . 9 48 

Frankft. S 6 43 8'dscot C 12- 54 

Funchal C 14 57 SIngtpr. C .30 88 

Genovs S B 43 S'riagot — ■— 

Glbritr. S 17 63 Stckhm. S . 4 39 
Gl'ag'w C 7 46 Strasbg. S 7 45. 

G'msey F 6 43 Tangier S 17 63 

Hetelnlei S 4 39 Tel Avhr S 18 B 

H. Kong C 15 59 Ttnorif* F 20 68 

Innabrfc. S 10 50 Tokyo S 7 45 

Jftvrnas. C 7 48 Tr'ntot 

l.o.Man S 7 45 Tunis C 15 69 

Ittsnbul C 6 43 Valencia S 14 57 

Jersey C (6 43 Venice C 9 48 

Jo 'burg F 23 73 Vienne F 4 39- 

LPIme. C 19 66 Zurich • S 6- 41-' 

Uabpn F. 14 57 3MptNBr.6H • wf 
C — Cloudy. F — FUr. R — Rain. • 
5— Sunny. 

t Noon GMT xemporstum. 


The BTR formula for extract- 
ing glamorous returns from un- 
glamor ous products is proving 
resilient to the recession. Profits 
from the UK fell by £4m to 
£26m last year but group pre- 
tax profits steamed ahead 28.2 
per cent to £90.1m and the 
return on net capital employed 
remains just above 25 per cent. 

So shareholders are unlikely 
to complain about BTR’s .fairly 
frequSet requests for funds. A 
reduction in the tax rate .has 
(almost fully compensated for 
the dilution airsing from. 1980*6 
rights issue and the dividend 
has been bumped up by 23 per 
cent. 

A. further cash, call looks 
unlikely for the time bring. 
BTR is comfortable with' net 
debt representing 47 per cent of 
shareholders funds and there is 
apparently no acquisition in the 
pipeline. Last year, BTR relied 
heavily on. new businesses . to 
keep tbe profits engine rolling. 
Serck contributed nothing at 
the' bottom line tort the earlier 
Huyck acquisition hetpetito 
push the contribution from toe 
Americans up . 80 . per., cent' to 
£29.5m and additions to the 
stable accounted for roughly 10 
per cent of profits from South 
Africa and Australia. - 

The current year should seei 
BTR improving to around £110m 
without much help -from acquisi- 
tions. Tbe £27m whit* has been 
pruned from UK operating costs 
over the past two years should 
reverse the trend in UK earn- 
ings and if toe Monopolies Com- 
mission permits, Serck will start 
contributing; 

At 350p, the shares are close 
to tifa top of their recent trad- 
ing range and yield only 3.6 per- 
cent BTR’s group . trading 
margins are already over 15 per 
cent so there is a good deal 
more room for recovery among 
weaker companies wbw the UK 
economy revives. But the City 
shows no sign of losing faith in 
a perennial favourite. •• , 

^CC 

The long drawnout battle for 
ACC seems to be entering a. 
more decisive phase. Up to now 
Mr Holmes a; Court has been 
seen as a profit-taker. If so, his 
latest bid of 95p takes him onto 
dangerous ground. . Of course, 
it is possible that pressure from 
the Takeover . Panel after the 
discovery of last week’s surrep- 
titious share baying has been 
an influence. At any rate this 
latest offer appears fairly 
straightforward, without some 
of the conditions- seen earlier. 


Index rose 54 to 5641 



" An asset stripper with time, 
and money on his side might 
estimate ACC’s worth' : at 'some- 
thing in the region of l30p, and 
..would allow . perhaps B0p for 
hidden horrors. The; film.' On 
Golden Pond daily appears more 
valuable and even though only 
25 per' cent of the film, TV. and 
video rightertiaye been retained, 
shbuld still be worth a farther 
Bp or so a share. Meanwhile, 
since Mr Holmes h Court would 
be a forced ’ seller; of the 
majority stake in CTV. ACC 
would appear .to be w orth less 
to lain than to a UK concern. ' 

.After so much effort In the 
courts to' open upf he oppor- 
tunity for- a conventional.: bid 
battle. Heron may be reluctant 
to bow..out wito its outstanding 
90p offer; The Task for. share- 
holders -hi holding on till, the 
last minute-lias been reduced by 
‘ the - close interest being demon- 
strated by the Takeover Panel, 
although unpleasant surprises 
cannot berated- out The shares 
nose 2p yesterday to :96p. 

Touche Remnant . . 

- NobTong ago many of Touche 
Remnant’s, investment trusts 
.were languishing at discounts 
of over 30 per cent— but toe 
announcement t of impending ■ 
change works -wonders. The 
market has ! known since, just 
before Christmas that some 
reorganisation was in the any 
and toe average discount has 
crept back to around toe sector 
average of 22 per cent. 

Apart from the now ritual 
name changes, 10 of the 12 port- 
folios- under Touche manage- 
ment have been significantly 
restructured, with investment . 
aims rieariy set out Besides 
familiar-' friends like, technology 
(though it is * advanced "Jin 


titis case) and smaller can* - 
panics institutions now have 
their disposal tbe first special • 
property investment trusts' anT •; 
sizeable new Australian and _• 
North American vehkfcs...., 
American- trusts are surptot " - 
zhgly rare and invariably sao& -. 

Unlike Fleming, ; whose 
. scheme is now back to the drift* ' 

tog board. Touche may have gut ;• 
it right first time.' Brokers and - 

institutions like to know- pre- 'j 
cisely what they , are buyiu& ] 
and although there & - an 
element of^ ^reshuffling Invoked 
Touche now seems to be makrqg t 
toe best use of its expertise^ ' 
- - There is a danger, however, - 
In t hin>fl * n g that specialisati o n 
- for its own sake is the znsvet i. 
It may terry- a premium wbep 
unwieldy general trusts are t&a. - 
ruler but 'What happens . when :.'i 
everyone specialises? lta share 
prices of Far East specialist • 
trusts have moved down store 
Drayton Commercial bessa' - . 
concentrating on Japan. . As&, - 
the institutions still fdl tiure 
-are ton many trusto: Toudtaft : 
Commendable decision to sacri- 
fice Cedar in this exerdse xtey 7 
ultimately not be enough.- . > - 

Markets 

The financial markets west '. 
about their Cosiness in the- now -- 
familiar way yesterday, knocks - 
tog gold' £ 16 } to $336* wtSe - 
bond prices moved serenely ' 
upwards. • U.S. prime cuts 
followed a very good set pl 
U-S- money TSSP.ly figures, white 
the British wholesale price 
indices for February were very < 
satisfactory, if less spectacufer 
on the 'input side than the down- 
ward .spiral of commodity prices 
might have suggested. 

.. : But sterling -Was weaker toan .-’* 
for some time/ and toe Bank Of. r : 
England signalled once again to 
the money markets that it would 
like to see some restraint in toe . 
deriirne of interest rates. The 
discount houses are scarcely 
more wilting art present to veil 
official' mates halls- for later re- 
purchase to the Bank <rt Eng- 
land; than to sell outright, so 
yesterday they ended up borrow- 
ing for two 4ays at toe modestly 
pens rate of 14 per pent Much 
the Game may happen today,.. : 
when -a ; big - shortage is on the 
cards. ■ ••••• =' -- 

Tire gilt-edged market closed \ 
-below its best 'tevels, braced for 
*u fosttot tap stock as soon as 1 
r toe Budget fa over and appor. * 
ently confident that a new issue 
will .not pause as much damage 
as foe' notorious 1990 “Dog.” nnr -r. 
leteed a year ago. - - 


sums